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 principle of equipment rental rate guides for contractor owned equipment is. Equipmentwatch announces lowest cost of ownership awards. Thus, beginning with the january 1st half 2017 update, we will no longer. Equipment overhead includes such items as insurance, property taxes, storage, licenses and recordkeeping. The blue book building and construction network company info. To evaluate the cost components involved in the cal culation of construction equipment rental rates. Method for determining equipment rental rates for the. The objectives of the research program were as follows. The bluebook pro estimator has leveled the playing field, enabling contracting companies of all sizes to create accurate and professional looking estimates. Avoid costly negotiation by specifying the industry standard equipment charge rates for extra work before the project begins. Since 1981, it has provided heating, ventilation and air conditioning hvac installation and repair for residential, commercial and new construction projects from broward spring2019 both. The use of this pamphlet is for rate determination on construction contracts, dredging contracts, and negotiated procurements and relates only to contractorowned.
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. Construction equipment ownership and operating expense. In the late 1970s, the tandy center shopping mall in downtown fort worth, texas, was booming. Since 19, the blue book building and construction network has been a trusted source for information.
Construction ownership, operating costs rental rate blue book. Construction memorandum 0809 force account billing. The use of this pamphlet is for rate determination on construction contracts. Column 1 shows the hourly rental rate for ownership and overhaul expense.
All other provisions of the agreement remain in place. The blue book for costplus, force account, and ownership and operating cost reimbursement. The hustle and bustle of shoppers, the sounds of metal blades scr. A formula for construction equipment cost recovery for. The enhanced utility and access to equipmentwatchs construction equipment data targets a wide variety of businesses including construction contractors, equipment dealers. Construction book express your online construction book. Multiply the total cost of a piece of equipment x 5%month x x 80% to arrive at the estimated annual rental dollars. If it has any similarities to the usace construction equipment ownership and operating expense schedule ep 1110 1 8, there is an adjustment for depreciated equipment. For items not referenced in the rental rate guide, odot contract rates were. I compare the equipment rates with local rates andor national blue book rates to determine reasonableness. Session o2 explains what role the hourly rate plays in an equipmentusing company, and how the rate should handle transactions. In the construction machinery world, the mentality of fixing things only when they are broken is a costly approach to excavators feb 27, 2020.
Industry source of regional, categorized construction information and is available in print and online. There are also other possible adjustments for severity of the conditions, actual purchase prices, etc. Therefore study of services and equipment is essential for technicians in construction, surveying and architecture. The use of privately owned equipment is to be approved on a casebycase basis by the appropriate new york state department of transportation resident engineer before any work is begun. Construction equipment rental rates represent a considerable portion of the costs incurred by contractors when submitting claims for force account work to the florida department of transportation fdot. Avoid costly negotiation by specifying the industry standard equipment charge rates for extra work. Oct 28, 2011 the 2008 edition of the blue book for construction equipment most major makes and models has over 1,000 pages of prices, values and specifications.
Rental rate blue book are intended as a guide to determine the amount an equipment. The contractor will receive payment for actual costs of direct. For items not referenced in the rental rate guide, odot contract rates were applied as well as the latest federal emergency management. This is the standard fhwa recommended reference for rental rate calculations. The 2016 national construction estimator lists estimated construction costs to general contractors performing the work with their own crews, as of mid2016. Primedia announces complete new suite of electronic products. Add tags for rental rate blue book for construction equipment. The rental rate blue book is a comprehensive guide to cost recovery for. Additional guidance on 23 cfr 635 a contract administration. Construction equipment rates contract pricing including cas.
Rental rate blue book cost recovery equipmentwatch. Pursuant to a legislative requirement, gao provided information on the equipment rental rates states use to reimburse contractors for unanticipated work on federalaid highway projects, focusing on. Taking advantage of available technology and working to meet the changing needs of the commercial construction industry, the blue book network is fast becoming the leading provider of information, communication and marketing solutions. This information can be forwarded to equipment watch for a rate determ ination.
That means the contractor has submitted an hourly rate for labor, equipment rates and material prices. The contractor shall submit a fully completed bc 2370, equipment expense rate data sheet. Where else can you start with little cash, no special education and no special skills and build a multimillion dollar company in 10 or 15 years. May 15, 2017 construction equipment ownership and operating expense schedule table of contents.
Search the blue book online and you will find over 800,000 company listings. Best sites about blue book rental rates construction equipment. Therefore, if a project or home office overhead rate is proposed to be applied to a blue book rate, the state must ensure that it contains no equipment overhead cost factors. Determination of construction equipment rental rates in force. 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. Federal claims court approves contractors use of blue book. Construction lost 975,000 jobs in april, the largest recorded decrease in construction jobs since the government began tracking employment in 1939 associated builders and contractors inc. Handbook of construction contracting volume 1 by jack p. This is the rental rate blue book for construction equipment, volume 1. Our workflow tools make it easy to upload your fleet, share rates across your organization, and prepare reports that streamline the reimbursement process. 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.
The standard reference for rental rates on all classes of heavy construction equipment. Over recent years, the blue book has become a standard for determining equipment rental rates across the industry, and it is used by private contractors, large. Construction equipment or the rental rate blue book for older construction equipment. Rate blue book for construction equipment which is published by the equipment. Sep, 2012 are you referring to the rental rate blue book. Rental rate blue book equipment cost recovery equipmentwatch. By mutual agreement, agc and wsdot have replaced the rental rate blue book published by primedia information, inc. Primedia announces complete new suite of electronic. Since 1998, construction book express has been providing builders, designers, and construction professionals with the products they need.
The blue book rates include all equipment overhead costs. Building services and equipment volume 1 is the first book in a widely acclaimed trilogy that has become established as the leading work in this field. These rates vary widely, depending on factors such as type and age of equipment, capacity, operating costs, availability, and the geographic and climatic conditions at the jobsite. Thousands of contractors and project owners trust our rental rate blue book rates to reimburse equipment ownership and operating costs incurred during extra work. Rates and specifications for construction equipment, published by equipmentwatch, a unit of intertec publishing, 1735 technology drive, suite 410, san jose, ca 95110.
For the hourly and nonmetered equipment, the standard rate may be derived from the rental rate blue book for construction equipment. The rental rate blue book is the only commercial equipment rate. The developer of the blue book accumulates all contractor costs for owning a. A legacy of purpose, passion and playing it straight if you are reading this, you probably have benefited in some way by jims desire. Equipmentwatch produces the leading database information products for the construction equipment industry and is the world leader in heavy construction research and serves more than 15,000. No career offers better opportunities than construction. Construction equipment and methods ence 420 assakkaf slide no. Use the figures in this division when estimating the cost of. Instantly access the rental rate blue book reimbursement rates. I verify the labor rate from certified payrolls and materials from invoice prices. Click here to download 9 ways to connect, communicate and collaborate with blue book network subcontractors today. The fdot currently uses two methods to establish reimbursement of equipment costs. The blue book equipment rental rate guide is published annually by the bc road builders and heavy construction association, in partnership with the provincial.