Machine Idle Time

denick

When you figure a job do you ever figure in "Idle" time for machines? If you are on a job and a machine needs to be there for you to use but it may be sitting as much as it is used. Do you recover the cost of ownership without the operator and operating costs?

Do you figure labor and machine costs seperately?

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Nick

"Every day I remind myself that my inner and outer life are based on the labors of other men, living and dead, and that I must exert myself in order to give in the same measure as I have received and am still receiving" Albert Einstein

rino1494

Typically I don't. If I am bidding a job and I need it for only 1-2 hrs, I will figure in the cost of 3-4 hr minimum, depending on what type of mood I am in.

Yes, our machine cost and labor cost are seperate.

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PipeGuy

NO. But I do figure 'weather days' based on historical precipitation data. I figure weather day costs at less than 'typical' day costs and also figure additional time for the subsequent impact of the weather on productivity.


I look at anticipated total annual costs, divide that by the number of days worked in a year and the number of crews fielded and charge the subsequent "daily rate" for each crew.

I account for them seperately but use an aggregate 'E,L,OH' cost for estimating purposes.

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denick

As an example;

Your operator and laborer are working on a job 45 min. from your shop. they will spend 30 min. a day taking care of the equipment. They will put in a productive time of 8 hrs. The job is 12 working days.

Would you estimate 120 hours for the Op & La and 96 hrs. of machine operating costs?

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Nick

"Every day I remind myself that my inner and outer life are based on the labors of other men, living and dead, and that I must exert myself in order to give in the same measure as I have received and am still receiving" Albert Einstein

rino1494

Their time to be paid should be when they get to the job, not travel time from the shop to the jobsite too. I would figure 8 hrs machine time and then 1/2 hr labor rate for each for maitenence.

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tgeb

I do a lot of jobs were the machines sit for more than 1/2 a day every day. Some days I may use a skid loader for 1 or 2 hours and the excavator for an hour or so. But the fact is a machine is required on the job.

What I do is charge for the machine be it skid loader, backhoe or excavator as if it were a rental piece.

That is.. if you (the customer) had to rent a skid loader from the local rental store it would cost X number of dollars. To that I add a move fee if necessary and then add to that operator cost for the day, some jobs I price the operator at a 10 hour day some jobs an 8 hour day.

A lot of guys price the machine w/operator per hour or per day. What I found is that if the machine sits for a few hours people don't want to pay and expect you to work out some sort of discount on the daily rate. (why do I have to pay for a loader and operator when he is just sitting and waiting for the trucks to come back? )

My method eliminates that, and covers the number one overhead cost....LABOR.

If I have a situation that the equipment will clearly not be used very much, say like when we pour a footing or slab, I will charge only 1/2 day for the machine.

I think it is the most fair way to price our work out.
If the builder thinks he can rent a machine for less and put an operator as experienced as one of my guys in it for less....let him!

I use the rates right out of the book that the rental houses provide and don't add anything. I figure that we will then be actually cheaper than the rental house as we don't charge for fuel, tax or insurance.

Seems to work out OK for me.

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Tom

www.gebcon.com