Determination of construction equipment rental rates in force. The developer of the blue book accumulates all contractor costs for owning a piece of equipment for an. The developer of the blue book accumulates all contractor costs for owning a piece of equipment for an entire year. Buying and selling equipment without knowing its true market value can lead to the loss of thousands of dollars. Equipmentwatch provides local government accurate used equipment prices to make better buy and sell decisions. The developer of the blue book accumulates all contractor costs for owning a piece of equipment on an hourly basis. These costs are then prorated over the months that the equipment is normally expected to work. Customers now have access to both nationally benchmarked and usercustomized charge rates.
We bring the industry together to forge connections and build relationships. The blue book network is the largest and most active network in the commercial construction industry. What matters most to the owner of a fleet of construction equipment. All other provisions of the agreement remain in place. When equipment is idled or on standby in a delay, the specification provides for payment at 50% of the rental rate blue book. I signed on with the blue book four 4 years ago in an effort to get my company more exposure in the construction industry. Introduction to cost recovery rental rate blue book the rental rate blue book is a comprehensive guide to cost recovery for construction equipment. Rental rate blue book cost recovery equipmentwatch.
Change order or contract change order a written order signed by the engineer, issued with or without the consent of the contractor, directing changes. Stafford disaster relief and emergency assistance act, 42 u. Determination of construction equipment rental rates in. Equipmentwatch expands rental rate blue book, internal. Equipment rental rate calculator frequently asked questions. The blue book adjusted rates cover all eligible equipment related costs. The blue book network intelligence and analytics team focuses on discovering the trends and data relationships that drive labor and materials throughout t. For the hourly and nonmetered equipment, the standard rate may be derived from the rental. Some equipment is depreciated on an operating hours basis, for example. Rate blue book for construction equipment which is published by the. The blue book equipment rental rate guide is published annually by the bc road builders and heavy construction association, in partnership with the provincial ministry of transportation. The hourly blue book rate is approximately 15% of the daily rate, based on the loss of roughly 80 hours during a month when machinery is used on an hourly basis. The rental rate blue book is a comprehensive guide to cost recovery for construction equipment. The blue book has become the standard for determining equipment rental rates across the industry, and it is used by private contractors, large corporations and the government.
Each rate covers all costs eligible under the robert t. Rental rate blue book trademark of informa business. Equipment rental rates and labor surcharge caltrans. The blue book equipment rental rate guide is published annually by the. Rental rate blue book equipment cost recovery equipmentwatch. Therefore, they are considered to be the maximum eligible rates for federalaid participation purposes. The middle section of the equipment report, under the blue book rates heading, shows associated contractor costs for owning a piece of equipment. Since the construction equipment industry, is so large, not every make and model has been categorized and assigned a value within equipmentwatch.
The results gives a contractors cost of owning the equipment for a month established in the blue book as 176 hours. The contractor should not be charging you rental rates out of the blue book. Rates listed in the rental rate blue book are intended as a. If a year is not listed as a selection, then the pamphlet was not published in that year. I was under the impression that blue book was a big name in the industry, so i was willing to fork over the 10 grand a year in advertising fees. Equipment rental rate guide crown publications online catalogue. Construction equipment rental rates vary widely according to fac tors such as type and. For most owners and managers, cost is the primary concern. Equipmentwatch provides data for construction equipment, lift trucks and ag equipment equipment costs, valuesprices, year verification, rental rates. Equipment rental rates contract administration construction.
Some of the equipment you will own, some you will rent and some will just be 100% charged off to the job. Equipmentwatch establishes new standard for standby and. Heavy equipment leasing average costs the cost of leasing construction equipment depends on the size of your lease, your credit score, and seasonal demand and where your business is located. The cost to move construction equipment from an equipment yard or rental company to the job site and back again is not included in equipment rental costs listed in the reference section, nor in the bare equipment cost of any unit price line item, nor in any equipment costs shown in the crew listings. The bluebook pro estimator has leveled the playing field, enabling contracting companies of all sizes to create accurate and professional looking estimates. The blue book for cost plus, force account, and ownership and operating cost reimbursement. Bluebooks cost data is based on many factors that include nationally researched labor rates, material and equipment costs, actual loss repairs, related contractor bids, and insurance claim audits. A typical equipmentwatch rental rate blue book report for a linkbelt rtc 8050 series ii crane is included as an attachment to this.
According to equipment watch, the publisher of the rental rate blue book, 47 state dots and numerous municipalities specify the use of the blue book for pricing significant costs. Equipmentwatch establishes new standard for standby and idling cost calculation. The use of privately owned equipment is to be approved on a casebycase basis by the. Construction equipment rates contract pricing including. Equipment is not expected to work constantly for 12 months. You want equipment that gets the job done efficiently and effectively, but you also want to control costs. This is the standard fhwa recommended reference for. The userdefined ownership adjustment is designed to modify the total equipment ownership cost by a single userdefined. Home profit matters a formula for equipment cost recovery a formula for equipment cost recovery the more equipment you use, the more accurate equipment cost recovery techniques must be for bidding. Construction plan extra work rates, equipment data.
Historical equipment rates past editions of the us army corps of engineers ep 111018, construction equipment ownership and operating expense schedule, are available from 1981 to the present. Volume 3, for equipment 11 to 20 years old dataquest. This guide is provided for reference purposes only to assist in determining the appropriate ratings listed in section 127. This is due to the overestimation of time required for labor and equipment compounded by the standard addons that do not reflect contractor pricing methods.
Calculating the cost of ownership of construction equipment. Access the cost recovery calculator to determine specified rental rate blue book rates for heavy equipment use on force account work or change orders. The rates on this schedule of equipment rates are for applicantowned equipment in good mechanical condition, complete with all required attachments. This reduced rate is intended to cover the contractors ownership costs less major. The contractor will be paid the rental rates, as modified herein, set forth in the rental. Search the blue book online and you will find over 800,000 company listings. Equipmentwatch, the leader in data, software and insights for the heavy equipment industry, has expanded its rental rate blue book and internal charge rate products to include cost data for over 22,000 models, a new record for the equipmentwatch cost products. Blue book rental rate blue book for construction equipment published by equipment watch, a premedia business directories and book group. By mutual agreement, agc and wsdot have replaced the rental rate blue book published by primedia information, inc. Used equipment prices equipment blue book equipmentwatch. Since 1964, bluebook has been publishing residential repair and replacement costs across the united states. Commonly known as the blue book, this heavy equipment rental rate guide is.
Equipment costs monthly equipment rate table cost per. The blue book for costplus, force account, and ownership and operating cost reimbursement. The blue books for construction equipment 2008 the 2008 edition of the blue book for construction equipment most major makes and models has over 1,000 pages of. The rental rates for privately owned equipment are determined by referencing either the new york state office of general services heavy equipment rental standby contract or the current rental rate blue book for construction equipment by primedia, inc. Equipment rental rates federal highway administration. When equipment cost and usage data is combined with accurate labor, material and subcontractor costs, contractors get a complete job cost picture for better decision making and, potentially, greater. Each piece of equipment carries its own independent historical and current information for accumulated costs, hour readings, and odometer readings where applicable. Customer is responsible for any damage to or loss of goods, including all flat tires, regardless of cause. The rental rate blue book is the only commercial equipment rate schedule tested and approved by the federal highway administration fhwa as an acceptable guideline for reimbursement of contractor equipment costs in force account or extra work. Payment of equipment rental rates for disruptions and inefficiencies cover the contractors depreciation costs. Custom charge rates leveraging contributed customer and equipmentwatch data, a detailed process to create custom internal charge rates.
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. For the hourly and nonmetered equipment, the standard rate may be derived from the rental rate blue book 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. Industry source of regional, categorized construction information and is available in print and online. The force account method of making project changes requires inspectors to verify the number of workers, the exact type of equipment, and hours of equipment usage on a daily basis.
If he is using owned equipment that has been fully depreciated on the company books, then you should negotiate a nominal but reasonable price for using the equipment plus operating costs. Construction specific accounting software makes it easy to track equipment hours and allocate costs to a job for more effective cost management. Equipment tracking is key part of job costing for contractors. Best sites about equipment rental rates blue book 2019. We have expanded our product and service offerings to include digital workflow solutions for all your projects from design to post construction. These new rates are a welcome addition to the standard rental rate blue book active use rates specified by the.
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