I see in my travels that determining what to charge for an owned piece of equipment is by far the one resource cost that everyone finds hard to calculate and the cost that there would be the most disagreement about. I see too many companies that have rates but not real backup to support the rates. Mike Vorster has an excellent book with real-world examples along with an Excel spreadsheet that can assist in calculating internal equipment rates. From an estimator’s point of view not all sections of the text will be applicable but it is for someone else in your company. I am going to finally start to read the book and will be sharing some of my findings here in my blog. See the Link below where you can purchase Construction Equipment Economics. Highly recommended.

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