Blue book equipment rental rates are generally based on equipment type, make, year, usage, and time. Technical memo on equipment rental rates this document outlines rental rates for trucks and the four methods used to determine equipment rental 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. The developer of the blue book accumulates all contractor costs for owning a piece of equipment on an hourly basis.
The rental rate blue book is the only commercial equipment rate. Jul 17, 2006 multiply the total cost of a piece of equipment x 5%month x x 80% to arrive at the estimated annual rental dollars. The contractor should not be charging you rental rates out of the blue book. Based on the above rationale, the fhwa has determined that when the blue book is used to calculate equipment rental costs for periods of less than a month, the most equitable approach is to utilize an hourly rate developed by dividing the blue book monthly equipment rental rate by 176. Department of transportation and development edsm no. 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. We suggest you add the percentages for depreciation, cost of facilities capital, and indirect costs in order to obtain a total percentage of the blue book rate. Additional guidance on 23 cfr 635 a contract administration. All costs associated with the assembly and disassembly of the equipment for the transport should also be considered in the mobilization costs. The parties may wish to refer to and adopt where appropriate, the provisions of the bc road builders and heavy construction association equipment rental guide the blue book as authorized by. I am surprised kbb or black book doesnt have a guide. Rental rate guide book for construction equipment blue book, volumes 1, 2 or 3, as applicable, latest editions, adjusted as described in this edsm. The office of equipment management calculates standard equipment rates for the ohio department of transportation odot. 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.
Stafford disaster relief and emergency assistance act, 42 u. Use of blue book rates to calculate of standby equipment costs in. When the equipment is not in use, this item should be charged at 50% of the rental rate blue book. Federal claims court approves contractors use of blue. Hired equipment program province of british columbia. Rental rates and specifications for construction equipment, published by equipmentwatch, a unit of intertec publishing, 1735 technology drive, suite 410, san jose, ca 95110. These new rates are a welcome addition to the standard rental rate blue book. Equipmentwatch rental rate blue book report a typical equipmentwatch rental rate blue book report for a linkbelt rtc8050 series ii crane is included as an attachment to this memorandum for reference and example purposes.
That means the contractor has submitted an hourly rate for labor, equipment rates and material prices. When equipment is on standby there is no wear and tear. Effective january 1, 2018 through december 31, 2018. If a year is not listed as a selection, then the pamphlet was not published in that year. Particular attention should be given to the surveyors vehicle. Equipment rental rates contract administration construction. Books are no longer available in hard copy and should be downloaded. 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. Federal claims court approves contractors use of blue book rates. Standby time shall be defined as the time during which equipment is. The hourly rates shown in table 2 1 reflect catalog list prices of equipment manufactured in 1998 3 yearsold.
Nov 15, 2017 equipmentwatch establishes new standard for standby and idling cost calculation. There is no such thing as a blue book or book value in heavy equipment. To find the true price you need to search for equipment that meets you specifications for the jobs you plan and you need to consider your location. The blue book equipment rental rate guide is published annually by the bc road builders and heavy. The developer of the blue book accumulates all contractor costs for owning a piece of. The contractor shall submit a fully completed bc 2370. Rental rate blue book equipment cost recovery equipmentwatch. The deciding issue for me to vote for the fhwa is simplicity. 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. Federal claims court approves contractors use of blue book rates to calculate of standby equipment costs in constructive change claims against the navy construction co, inc.
Standby rates should be used for equipment while being hauled to the project. 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. Standby rates are meant to reimburse the contractor for fixed costs such as. Equipment rental rates are available on the internet at.
Equipmentwatch establishes new standard for standby and. This will be in addition to applicable rates for the hauling equipment. This is the standard fhwa recommended reference for rental rate calculations. Payment for such standby will be limited to not more than eight hours in a. Rental rate blue book cost recovery equipmentwatch. The rate element table provides critical information such as percentages for depreciation, overhaul, cost of facilities capital, indirect costs, and fuel that vary for each type of equipment. Construction memorandum 0809 force account billing. I compare the equipment rates with local rates andor national blue book rates to determine reasonableness. These include the use of standby equipment rental rates, the use of. By mutual agreement, agc and wsdot have replaced the rental rate blue book published by primedia information, inc. The rental rate blue book published by primedia information, inc. For the latest information regarding the novel coronavirus covid19 please visit the california coronavirus covid19 response page. Equipment that is not in good working condition or is not of proper size for efficient performance of the work may be rejected by the epm.
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. May 15, 2017 construction equipment ownership and operating expense schedule table of contents. The hired equipment program distributes available work to local equipment owners. Miscellaneous equipment rental rate information caltrans. These new rates are a welcome addition to the standard rental rate blue book active use rates specified by the federal highway administration, most state dots, and hundreds of project owners for. Femas schedule of equipment rates cost code equipment specification capacitysize hp notes unit rate 8 boat, row heavy duty. Standby rates in the equipmentwatch cost recovery guide are by default the hourly cost associated with an asset on standby. For items not referenced in the rental rate guide, odot contract rates were applied as well as the latest federal emergency management agency equipment rates. A formula for construction equipment cost recovery for. Alternatively, the hourly cost can also be estimated using monthly costs and dividing by 176. If you use the market value method, the resultant contract rate you calculate will be higher in early years of. Each rate covers all costs eligible under the robert t.
By default, costtrax adopts the standard formula for standby as 50% of the rental rate blue book ownership cost. However, we have one suggested way to calculate standby rates when using a cost recovery tool such as the rental rate blue book. This guide is provided for reference purposes only to assist in determining the appropriate ratings listed in section 127. Equipment rental rates and labor surcharge caltrans. The rental rate blue book is a comprehensive guide to cost recovery for. The blue book for costplus, force account, and ownership and operating cost reimbursement. Construction equipment ownership and operating expense. Nov 16, 2017 equipmentwatch, a leader in data, software, and insights for the heavy equipment industry, has expanded its cost recovery product to include hourly cost rates for standby and idling equipment. This is the associated equipment distributors aed green book. Rented equipment rental rates for rented or leased equipment, hereinafter called rented equipment, shall be as paid by the contractor, subject to the conditions of this edsm. Excavator blue book guide the best sources for finding actual pricing information on excavators are listed below. When equipment is required to be on standby, the contractor continues to incur certain ownership costs cost of facilities capital, but does not incur operating costs. These rates are utilized internally at odot and are viewed and.
Here in mi i use price has been determined on a force account basis, detailed records are in the file. Only if contractor is paying crew for drivecommute time as a normal course of business. Multiply the total cost of a piece of equipment x 5%month x x 80% to arrive at the estimated annual rental dollars. For any equipment not listed in the blue book, rental rates will be agreed to in writing prior to the use of such equipment on force account work or paid for by invoices. The program is based on seniority and is designed to deliver work to registered users fairly and efficiently through the development of local area callout lists register for the hired equipment program. The preparation of contract documents for the alteration or construction of an interior area of a structure designed for human habitation or occupancy, including specifications for partitions, materials, finishes, furniture, fixtures and equipment. The use of privately owned equipment is to be approved on a casebycase basis by the. Privately owned equipment 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. Instantly access the rental rate blue book reimbursement rates. The collaboration in the completion of a project for the alteration or.
The blue book adjusted rates cover all eligible equipment related costs. Avoid costly negotiation by specifying the industry standard equipment charge rates for extra work before the project begins. If the equipment is determined to be older than its estimated economic life overage or was purchased used, refer to c hapter 3. Standby rates in the equipmentwatch cost recovery guide are by default the. Therefore, they are considered to be the maximum eligible rates for federalaid participation purposes. These new rates are a welcome addition to the standard rental rate blue book active use rates specified by the. These new rates are a welcome addition to the standard rental rate blue book active use rates specified by the federal highway administration, most state dots, and. Standby rates are meant to reimburse the contractor for fixed costs such as depreciation, cost of facilities capital, and indirect equipment costs.
Standby time shall not be paid when shutdown is the result of the fault or negligence of the contractor. Customers equipment electric demand control and data collection equipment. For items not referenced in the rental rate guide, odot contract rates were applied as well as the latest federal emergency management agency. How to calculate standby rates equipmentwatch intel. All other provisions of the agreement remain in place. Looking to use a different schedule of standby rates for your project. Some equipment is depreciated on an operating hours basis, for example.
The difference is the depreciation rate to be used for that year. Same as other equipment, hourly based on blue book rental rates. These new rates are a welcome addition to the standard rental rate blue book active use rates specified by the federal highway administration, most state dots. Equipmentwatch establishes new standard for standby and idling cost calculation.