Construction equipment rental rates pdf

Rental means the rate you will pay for the hire of equipment or the cost you will charge to your project for borrowing an equipment. Either way, equipment and tools that you will use on your project must be assessed well. If your company owns a specific equipment, it will be easier to evaluate since you can verify the maintenance history of that equipment. You can add the cost for a mechanic, parts replacement and maintenance the equipment will need during the period of your project.

From that analysis you made, you can assess if it will be better to purchase a new equipment rather than to use an old one because of the incremental cost due to maintenance and parts replacement. Purchasing new equipment will always make your project cost proposal high. What we usually do is that even though we purchased a new equipment for that project we still use the rental rates on our estimate since we foresee that we can use it to our other future projects.

This will be a great advantage since brand new will be less prone to breakdowns that can cause delays on the project. Read our inaugural report HERE. The Rental Rate Blue Book is a comprehensive guide to cost recovery for construction equipment. Rates listed in the Rental Rate Blue Book are intended as a guide to determine the amount an equipment owner should charge in order to recover equipment-related ownership and operating costs.

These rates are derived from cost formulas and factors developed from field research and from analytic methods used in the construction industry. Generally, these methods include both direct and indirect costs and consider such operating variables as annual use hours, maintenance and overhaul costs, as well as unit price information such as fuel prices, labor rates, and the cost of money.

Profit, project overhead, and general company overhead costs such as office facilities and supplies are not included in the rates shown. Please see detailed cost explanations located elsewhere within this User Guide. Important Update, July For Nearly 60 years, EquipmentWatch has been committed to providing customers the most current and accurate equipment cost data that adequately reflects ongoing economic conditions.

Over the last few years, rapidly changing the economic patterns that have impacted construction-related industries, volatile energy prices, as well as advances in data science and technology, have compelled us to adopt a more frequent update cycle for our online Cost Recovery and Internal Charge Rate data.

Thus, beginning with the January 1 st Half update, we will no longer guarantee that print and online Cost Recovery formerly Rental Rate Blue Book data will consistently be in sync. If multiple configurations exist for a model, selecting a configuration is required before you can see your cost recovery rates.

Choose the specifications relevant to your asset from the drop down menus. You can make adjustments to your cost recover rates manually or by selecting an organization from the drop down menu. Most contracts will require certain adjustments to be made before submitting rates. You can then make location adjustments by city or state, adjust the ownership percentage, adjustment operating percentage, as well as the time standard displayed monthly, weekly, daily, hourly.

If you would like to print your cost recovery rates for submission or for your own records, you can click the print button at the top right corner of the page. If you would like to download your cost recovery rates, you can click the download button at the top right corner of the page. The data in the Rental Rate Blue Book is organized by equipment manufacturer and model, and includes models still in production to models discontinued as long as 30 years ago.

This on-line cost recovery information is designed to provide accurate and authoritative information in regard to the subject matter covered.

While all efforts have been made to assure total accuracy, the variable nature of the information and informational sources precludes any warranties of specific accuracy in any specific instance. The term "rental" does not refer to third-party contracts for the use of equipment and as such, rates are not a tabulation of rates being charged by third party rental companies.

Only by coincidence would RRBB rates match those charged by rental companies. The most common application is in force account work and for federally funded projects. Additionally, FHWA states that the rates must also be adjusted for age and geographic region.

User defined adjustments are also included in the FHWA rate shown. The ownership costs of depreciation, indirect costs, cost of facilities capital, and major overhaul are annualized and then adjusted to reflect the average annual working season to obtain a monthly rental rate, from which weekly, daily and hourly rates are derived. Rates are increased to account for lost availability and productivity during shorter use periods according to the following:.

The correct equipment configurations can be identified by general specifications. Depending on equipment type, there may be separate listings for power mode such as gasoline, diesel, electric, hydraulic, PTO, kerosene and pneumatic powered units.

Other specifications, such as transmission, horsepower, or bucket size, are given in order to facilitate equipment identification. Monthly Weekly Daily Hourly Est. To figure the total cost for owning and operating a piece of equipment, sum-up the following items:. The total cost suggested here is a guideline. It is not meant to define the actual rate a lessor may charge. The actual rate may be increased or decreased by factors not taken into account, such as severe job conditions, etc.

Archived Rental Rate Blue Book rates are sometimes required to settle claims, document job costs, or to complete audits. To access these historic rates, find your model of interest by any of the methods available such as Search or Category selection. Historical rates are accessed by simply choosing the date range of interest from the pull-down menu, and the rate screen immediately refreshes to show data that was in effect during the time period chosen.

Along with the historical rates themselves, adjustment factors for Age and Region are also historically accurate and functional. Just choose the Model year and Location from the appropriate pull-down menus to adjust and recalculate the historical rate. Standby refers to the situation where equipment is on the job and available for work, but is not put into operation until needed.

Under certain circumstances, for example during forced or legal standby, contractors may be entitled to payments for their equipment on standby. These payments are meant to reimburse the contractor for fixed costs such as depreciation, cost of facilities capital, and indirect equipment costs. Standby Rates in the EquipmentWatch Cost Recovery Guide are by default the hourly cost associated with an asset on standby.

Alternatively, the hourly cost can also be estimated using monthly costs and dividing by , the FHWA standard for equipment working hours available in a month. Idling rates refer to any instance in which a piece of equipment is located on a jobsite and the engine is burning fuel, but no ground engaging or other components are actively engaged in meaningful work. Idling Rates in the EquipmentWatch Cost Recovery Guide are by default the hourly cost associated with an asset idling.

Where is the FHWA standard for equipment working hours available in a month. The depreciation portion of the Blue Book Ownership rate is based on current or latest prices for the machinery. To compensate for different purchase prices for older machines, the Rate Adjustment feature is designed to index depreciation allowances to the year a machine was originally manufactured.

Analysts have used the Producer Price Index, published by the US Department of Labor, Bureau of Labor Statistics, and manufacturer's price literature to determine historical and current prices. This age adjustment is necessary for the rates to comply with federal cost principles concerning depreciation cost allowances.

The Rate Adjustment factors apply only to the basic ownership rates; they do not apply to the "Estimated Operating Cost per Hour. Adjustments to the Ownership rates, other than for Equipment Age and Region, can be made by referencing the Rate Element tables to estimate a specific adjustment and then inputting the desired factor into the User Defined adjustment in order to calculate a revised rate.

The Rate Element Tables in this guide are designed to allow for greater accuracy when adjusting Blue Book rates for standby, job severity, and duplication of costs. As defined earlier in this introduction, the Ownership portion of the Blue Book rate contains allowances for depreciation, major overhaul repairs, cost of facilities capital CFC , and indirect equipment costs.

The rate element tables show the percentage of the total Ownership rate is attributed to each cost. Conventional Scrapers. This diminished accuracy for discontinued models is due to the high variations in resale values for older machines. A basic rule of thumb is that the overhaul portion of the rates for older machines increases with age. The data in these tables do not apply to the Estimated Operating Cost per Hour.

The application of the data in these tables need not be limited to the situations described below. Note: Operating Costs should be charged at the full rate during all shifts. The location adjustment option is designed to show location variations of average equipment ownership costs.

The amount by which the rental rates should be increased or decreased is based on several factors that influence ownership costs. These factors include local mechanics' labor, sales tax, freight, and climate. The most significant factor in location variation is climate and its effect on the average annual use hours the working "season".

A shorter working season means rates will be higher in order to recover fixed costs.