Federal blue book equipment rental rates

Each rate covers all costs eligible under the robert t. Fhwa federal highway administration has limited their participation in matching funds with state highway agencies using rental rate blue book to the monthly. During that time period rentals for compact truck loaders shot up 925%, wheel loader rentals skyrocketed 273%, and forklift rentals jumped 90%. Vdot no longer develops equipment rental rates for the commonwealth.

Those that are available commercially via the rental rate blue book, or rates through the federal emergency management agency for declared emergencies only. Instantly access the rental rate blue book reimbursement rates. As a result, excessive charges have been incurred for equipment rental. In a survey of over 70,000 business owners, ceos, managers, and procurement professionals between 2011 and 2014, found that heavy equipment rentals are increasing across the nation. Cdot erosion control and storm water quality guide and pocket book, 6. Avoid costly negotiation by specifying the industry standard equipment charge rates for extra work before the project begins. Labor costs of operator are not included in the rates and should be approved separately from equipment costs. The contractor should not be charging you rental rates out of the blue book. For the hourly and nonmetered equipment, the standard rate may be derived from the rental. As a project engineer for the transportation department on construction projects, i know this one very well. Additionally, fhwa states that the rates must also be adjusted for age and geographic region. Stafford disaster relief and emergency assistance act, 42 u.

The hired equipment program distributes available work to local equipment owners. 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 corporations and the government. Local assistance division business virginia department. Rental rate blue book for construction equipment, 4.

Rental rates are based on an 8hour day, 40hour week, 160hour 4week month. The rental rates used by the california transportation department caltrans significantly exceed the blue book s rates. No low equipment rates based on commissioners rental schedule list any additions to the equipment. This memorandum also serves to implement equipment watchs rental rate blue book blue book as the source of equipment rates for force account billing. The rental rate blue book is the only commercial equipment rate schedule tested and approved by the federal highway administration fhwa as an. The most common application is in force account work and for federally funded projects. Equipmentwatch establishes new standard for standby and. Payment of equipment rental rates for disruptions and inefficiencies cover the contractors depreciation costs. The hourly rates shown in table 2 1 reflect catalog list prices of equipment manufactured in 1998 3 yearsold. 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. The rates on this schedule of equipment rates are for applicantowned equipment in good mechanical condition, complete with all required attachments.

Equipment rental rates federal highway administration. Crown publications online catalogue equipment rental. The blue book for costplus, force account, and ownership and operating cost reimbursement. Rental rate blue book equipment cost recovery equipmentwatch. Construction equipment rates contract pricing including. The data in the rental rate blue book is organized by equipment. All other provisions of the agreement remain in place. The contract is set up such that the contractor gets paid under specific bid items for work that is anticipated. Fhwa federal highway administration has approved the use of rental rate blue book on.

The traditional pdf format is also available for download. Fhwa federal highway administration has limited their participation in matching funds with state highway agencies using rental rate blue book to the monthly rate divided by 176 hoursmonth plus the hourly operating cost. Quick reference guide equipment rental rates from blue book. This guide will assist you in establishing the rental rate for construction equipment, as obtained from the rental rate blue book, and used to establish rates for force account work. Determination of construction equipment rental rates in force. Femas schedule of equipment rates cost code equipment specification capacitysize hp notes unit rate 8 boat, row heavy duty. Factors such as insurance, salvage, and age of the equipment a blue book. 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.

Mcaa members can now access our tool and equipment rental guide via an enhanced web portal. Best sites about equipment rental rates blue book 2019. Heavy equipment rentals include bulldozers, backhoes, large dieselpowered dump trucks, frontend loaders and other large construction and commercial equipment. It is suitable in cases when an agreement cannot be reached regarding the scope of work and the amount of payment. The costs in the estimators catalogs of costs will be updated periodically as the blue book is revised and no less than annually. Each estimator will post a copy of the updated equipment.

The hustle and bustle of shoppers, the sounds of metal blades scraping swiftly across the ice skating rink and the foot traffic of employees from the. Rental charges will continue until the unit has been returned and checked in at burris equipment or notice has been given that the equipment is ready to be picked up. Fhwa officials noted that the blue book s rates are the maximum allowed for federalaid. Hired equipment program province of british columbia. This reduced rate is intended to cover the contractors ownership costs less major. 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 equipmentrelated ownership and operating costs. Construction equipment ownership and operating expense. Current edition of the rental rate blue book of rental. Mail stop 692, fax number 65664677, central office s.

Force account work is not a preferred option due to the increased level of monitoring required. Information regarding the use of the schedule is contained in 44 cfr 206. The damage andor loss must be documented along with sufficient supportive documentation such as video andor photographs. These rates are derived from cost formulas and factors. This online tool is valuable for determining and verifying hourly operating and ownership cost rates for contractor owned equipment. Rental rate blue book cost recovery equipmentwatch. 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. Operating rate depreciation rate motor pool only replacement rate mile or hour rate monthly depreciation mini pass. Cost code equipment specification capacitysize hp notes unit rate.

Equipment rental rates for contractor owned equipment. The rental rate blue book is a comprehensive guide to cost recovery for construction equipment. To clear it up a bit, what im looking for is a price list as to what a contractor would charge a customer for force account work and the like. Force account the force account agreement specifies the labor rates, material costs, and equipment rates to be used. These guidelines would serve as the basis for the development of an analytical model that would determine equipment rental rates according to ownership costs, operation and maintenance costs, operating hours, equipment overhead, and profit. Some equipment is depreciated on an operating hours basis, for example. Only if contractor is paying crew for drivecommute time as a normal course of business. There you can refine your search to find what you need quickly. 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. This is the standard fhwa recommended reference for rental rate calculations. When equipment is idled or on standby in a delay, the specification provides for payment at 50% of the rental rate blue book. Equipment that is damaged andor lost during disaster incidents may be eligible for reimbursement. Since equipment rental rates are normally covered in standard specifications or supplemental specifications, approval authority would be in accordance with fhwa order 11, part 1, chapter 5. Equipment must be in actual operation performing eligible work in order for reimbursement to be eligible.

If the equipment is determined to be older than its estimated economic life overage or was purchased used, refer to c hapter 3. 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. 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. If localities have not developed their own rates, we recommend using of the following. When operating a heavy equipment rental business, rates are determined based on the profit the owner desires over a two to fouryear period. In the late 1970s, the tandy center shopping mall in downtown fort worth, texas, was booming. By mutual agreement, agc and wsdot have replaced the rental rate blue book published by primedia information, inc. Overtime charges will be prorated at 18 of the daily rate for each hour over eight hours in a day. Federal social security tax is contributed at the rate of 6. I have been looking all evening for a web site, or some other sorce of information on equipment blue book rental rates, to no avail mind you. Equipment costs will come from the blue book of construction equipment rental rates.

The fhwa federal highway administration has approved the use of rental rate blue book on federally funded projects. Regardless of how you view them, search results can be downloaded as either a. The use of privately owned equipment is to be approved on a casebycase basis by the. The deciding issue for me to vote for the fhwa is simplicity. Higher hourly cost compensation for heavy equipment used in. The blue book equipment rental rate guide is published annually by the bc road builders and heavy.

The rates in this guide are intended as guidelines paralleling amounts an equipment owner should charge during rental or contractual periods to recover equipmentrelated costs on a singleshift 8hour basis. 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. Map at the beginning of each blue book equipment section indicate adjustment factors for differences in climate and regional costs. Determination of construction equipment rental rates in. 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. The rates on this schedule of equipment rates are for applicant. The fdot currently uses two methods to establish reimbursement of equipment costs. Same as other equipment, hourly based on blue book rental rates.

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