equipment rate management

Who Should Attend Equipment Rate Management

Equipment Rate Management was designed for heavy equipment intensive construction companies and should be attended by all top executives who are involved in setting and using construction equipment charge rates; including the company's Owners, President, General Manager, Operations Manager, Chief Estimator, Controller and Equipment Manager.

Equipment Charge Rate Workbook Overview Document Click to Download

Signs that indicate you could benefit from learning a new way to set your equipment reimbursement rates include:

• Equipment losses wipe out job profits at year's end.
• Your company's revenue is down and much of your equipment is idle.
• Fuel cost increases are not being adequately covered in your bids.
• You bid all jobs, regardless of location or working conditions, with the same equipment rates.
• You don't have a system and formula for calculating your charge rates - instead, you take an educated guess using the Rental Rate Blue Book or local rental house rates.
• You can't tell exactly how much every single piece of construction equipment is costing you.
• You don't know for sure whether it makes more sense to rent or buy a piece of construction equipment.
• You make decisions about what equipment to add to your fleet based on your work in progress.
• You don't know for sure how your accounting and estimating departments should be using charge rates.
• You have only 1 charge rate for each piece of construction equipment.
• You have rental rates only for classes of construction equipment - you've never developed reimbursement rates for specific pieces of equipment.
• You suspect that you lose money on your construction equipment each year.
• The huge increases in gas prices caught you by surprise and ate into your profits.
• A major equipment breakdown or repair is a crisis and leaves you scrambling to cover the unexpected expense.

Grantlun provides business management training & construction management seminars in subjects central to successful construction enterprise management.