Construction Equipment
Operating Cost Schedules
on CD

Do you know what your operating costs are ???
Stop guessing...
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406 pages covering every aspect of equipment operating costs.
Published July 2005

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Works with Windows, Mac, Unix, Linux and others.
CDrom ISO 9660 format.

Equipment covered in this CD

TABLE OF CONTENTS

CHAPTER 1. INTRODUCTION
Page
1-1. Use ......................................................................................................................1-1
1-2. How to Obtain Assistance ...............................................................................1-1
1-3. How to Obtain CHECKRATE Software .........................................................1-1
1-4. How to Obtain this Publication........................................................................1-2

CHAPTER 2. METHODOLOGY FOR CONSTRUCTION EQUIPMENT
SECTION I. GENERAL................................................................................................2-1
2-1. Contents .............................................................................................................2-1
2-2. Basis for Equipment Rates..............................................................................2-1
2-3. Total Hourly Rate ..............................................................................................2-1
SECTION II. OPERATING CONDITIONS................................................................2-2
2-4. Average, Difficult, or Severe Conditions .......................................................2-2
2-5. Determination of Condition..............................................................................2-2
SECTION III. EQUIPMENT SELECTION.................................................................2-3
2-6. General...............................................................................................................2-3
2-7. Truck Selection..................................................................................................2-3
2-8. Crawler Tractor Selection................................................................................2-3
2-9. Equipment Accessories ...................................................................................2-3
SECTION IV. EQUIPMENT VALUE..........................................................................2-4
2-10. List Price + Accessories...................................................................................2-4
2-11. Discount Code...................................................................................................2-4
2-12. Sales or Import Tax..........................................................................................2-4
2-13. Freight.................................................................................................................2-4
2-14. Total Equipment Value (TEV).........................................................................2-4
SECTION V. LIFE.........................................................................................................2-4
2-15. Economic Life ....................................................................................................2-4
2-16. Working Hours Per Year..................................................................................2-5
SECTION VI. SALVAGE VALUE...............................................................................2-5
2-17. Salvage Value (SLV)........................................................................................2-5
2-18. Salvage Value Percentages............................................................................2-5
SECTION VII. OWNERSHIP COST...........................................................................2-5
2-19. Ownership Elements ........................................................................................2-5
2-20. Depreciation.......................................................................................................2-6
2-21. Facilities Capital Cost of Money.....................................................................2-6
SECTION VIII. OPERATING COST..........................................................................2-7
2-22. Operating Cost Elements ................................................................................2-7
2-23. Fuel Cost ............................................................................................................2-7
2-24. Filter, Oil, and Grease (FOG) Cost ................................................................2-9
2-25. Repair Cost ......................................................................................................2-10
2-26. Tire Cost ...........................................................................................................2-11
SECTION IX. STANDBY HOURLY RATE .............................................................2-12
2-27. Standby Hourly Rate ......................................................................................2-12
SECTION X. RATE CALCULATION EXAMPLE ..................................................2-13
2-28. Computation Example....................................................................................2-13

CHAPTER 3. ADJUSTMENTS TO HOURLY RATES
SECTION I. GENERAL................................................................................................3-1
3-1. Contents .............................................................................................................3-1
3-2. Basis for Equipment Rates..............................................................................3-1
3-3. Equipment Rate Adjustment Tables ..............................................................3-1
3-4. Determination for use of Equipment Rates in Table 2-1 ............................3-1
SECTION II. RATE ADJUSTMENTS........................................................................3-2
3-5. Rate Adjustments..............................................................................................3-2
3-6. Changes in Operating Conditions ..................................................................3-2
3-7. Change in Facilities Capital Cost of Money (FCCM) Rate .........................3-2
3-8. Actual Work Hours Exceed 40 Hours per Week..........................................3-3
3-9. Changes in Fuel Cost.......................................................................................3-4
3-10. Adjustments to FOG Cost................................................................................3-4
3-11. Equipment of different age than Table 2 -1 ...................................................3-4
3-12. Rate Adjustment for Overage Equipment .....................................................3-5
3-14. Standby Rate Adjustment, Equipment of Different Age than Table 2-1...3-6
3-15. Equipment Purchased Used ...........................................................................3-7
3-16. Rate Calculation Example ...............................................................................3-7

CHAPTER 4. METHODOLOGY FOR DREDGING PLANT
SECTION I. GENERAL................................................................................................4-1
4-1. Contents .............................................................................................................4-1
4-2. General...............................................................................................................4-1
SECTION II. ANNUAL USE........................................................................................4-1
4-3. Time Available to Dredge ................................................................................4-1
SECTION III. LIFE........................................................................................................4-2
4-4. Life.......................................................................................................................4-2
4-5. Annual Hours Available ....................................................................................4-3
SECTION IV. SALVAGE VALUE...............................................................................4-3
4-6. Salvage Value ...................................................................................................4-3
SECTION V. OWNERSHIP COST.............................................................................4-3
4-7. Ownership Cost.................................................................................................4-3
4-8. Depreciation.......................................................................................................4-4
4-9. Facilities Capital Cost of Money (FCCM)......................................................4-4
4-10. Other Ownership Elements .............................................................................4-5
SECTION VI. OPERATING FACTORS....................................................................4-5
4-11. Hourly Operating Cost......................................................................................4-5
4-12. Prime and Secondary Power ..........................................................................4-5
4-13. Water, Lube, and Supplies (WLS)..................................................................4-5
4-14. Repairs (RPR) ...................................................................................................4-6
SECTION VII. STANDBY............................................................................................4-7
4-15. Standby Rate .....................................................................................................4-7
SECTION VIII. NEGOTIATED PROCUREMENT....................................................4-7
4-16. Rates...................................................................................................................4-7
4-17. Allowance for Additional Capital Improvements ..........................................4-7
4-18. Overage Plant....................................................................................................4-8
4-19. Dredge Plant Purchased Used .......................................................................4-8
SECTION IX. RATE CALCULATION EXAMPLE ...................................................4-8
4-20. Rate Calculation Example ...............................................................................4-8

TABLES
Table 2-1. Hourly Equipment Ownership and Operating Expense ..........2-20
Table 2-2. Hourly Rate Elements ................................................................2-173
Table 3-1. Equipment Age Adjustment Factors for Ownership Costs .......3-8
Table 3-2. Equipment Age Adjustment Factors for Standby Costs .........3-27
Table 4-1. Dredging Plant Expense Factors..................................................4-9
FIGURES
Figure 2-1. Equipment Rate Computation Worksheet ................................2-14
Figure 3-1. Total Hourly Rate Calculation for Overage Equipment...........3-20
Figure 3-2. Standby Hourly Rate Calculation for Overage Equipment .....3-39
Figure 4-1. Month Available by Region............................................................4-2
Figure 4-2. Dredge Plant Ownership and Operating Rate Worksheet.....4-13
APPENDIXES
Appendix A References.......................................................................................A-1
Appendix B Area Factors ....................................................................................B-1
Appendix C Guide for Selecting Operating Conditions .................................C-1
Appendix D Equipment Hourly Expense Calculation Factors ......................D-1
Appendix E Economic Indexes for Construction Equipment .........................E-1
Appendix F Tire Description and Tire Cost ......................................................F-1
Appendix G Tire Life and Tire Wear Factors...................................................G-1
Appendix H Manufacturer List ............................................................................H-1
Appendix I Federal Cost-Of-Money Rate......................................................... I-1
Appendix J Equipment Accessories ................................................................. J-1
Appendix K Acronyms .........................................................................................K-1
EQUIPMENT INDEX .............................................................................................Index-1

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