Factors affecting the resale value of construction equipment and their relative impact

Abstract

Equipment replacement policies have a decisive effect on overall project cost and the achieved profit from construction equipment work. Equipment managers need to predict the resale value of the equipment to an acceptable level of accuracy to make the right decisions concerning equipment replacement. This research focuses on determining the factors affecting the resale value of construction equipment, then using analytic hierarchy process (AHP) and statistical analysis process, those factors were ranked according to their impact on the equipment resale value. Preliminary list of factors affecting the resale value was determined from previous research. The preliminary list contained fourteen factors. Then brainstorm sessions organized for a focus group of experts to discuss the factors affecting the resale value of construction equipment, and to finalize the list of factors. The final list of factors contained eighteen factors that have an influence on the resale value. Factors are classified into five major categories. A questionnaire was developed using the factors, then one hundred experts from private, public companies and consultant offices were consulted about the factors and their impact on the equipment resale value. This research represents those factors and their relative impact on the resale value of equipment.

Keywords

• Resale value
• Analytical Hierarchy Process
• Statistical analysis process
• Decision making
• Expert choice
• Minitab