Charging For Tool Use ? - General Discussion - Contractor Talk

Charging For Tool Use ?

 
Thread Tools Search this Thread Display Modes
Old 03-13-2019, 06:31 PM   #1
Pro
 
sunkist's Avatar
 
Trade: builder fl cbc
Join Date: Apr 2012
Location: bradenton fl
Posts: 2,474
Rewards Points: 342

Charging For Tool Use ?


So does any one charge for the use of certain specialized tools, such ac a concrete saw or a demo hammer ?.

I charge for these tools, I know I can not do the job with out them but they cost a fortune to buy and maintain.

As a example if we run the demo hammer for a day I bill $75.00 for the tool.
__________________
Still "Shakin" the tree boss
sunkist is offline  

Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ContractorTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

   

Advertisement

 

Old 03-13-2019, 06:35 PM   #2
I own stock in FotoMat!
 
480sparky's Avatar
 
Trade: 132 on Bush, I've got him at gunpoint!
Join Date: Jan 2009
Location: Iowa
Posts: 11,830
Rewards Points: 11,412

Re: Charging For Tool Use ?


Yes.

Anything special like recording metering, extra-tall ladders, IR testing, locating etc.

Advertisement

__________________
If there's a highway to hell and only a stairway to heaven, that pretty much tells you what the traffic patterns are expected to be.
480sparky is offline  
Old 03-13-2019, 06:39 PM   #3
Fire up the BBQ
 
griz's Avatar
 
Trade: GC
Join Date: Nov 2009
Location: CA
Posts: 21,457
Rewards Points: 1,612

Re: Charging For Tool Use ?


sort of...

most of the cost is in my overhead.

when i used the concrete saw i added the cost of a blade or 2 to the job.

demo hammer sometimes i added a new bit.

i get where you are going with this but sometimes i use one of these tools that i had not planned on.

i did add a charge when i brought a boom lift to the job, but many times that charge was offset by the labor savings of having the lift.
__________________
SOME JOBS JUST AREN'T WORTH DOING:
griz is offline  
Sponsored Links
Advertisement
 
Old 03-13-2019, 07:05 PM   #4
Pro
 
Randy Bush's Avatar
 
Trade: Exterior Remodeling
Join Date: Mar 2011
Location: Great Falls, MT
Posts: 5,212
Rewards Points: 672

Re: Charging For Tool Use ?


Normally if I rent it gets added, If I own it not so much so because like Griz said the labor savings. Like my manlift it saves me a lot of time and has made me money, Might add some for fuel or transport though.
Randy Bush is online now  
The Following User Says Thank You to Randy Bush For This Useful Post:
Warren (03-14-2019)
Old 03-13-2019, 07:05 PM   #5
Pro
 
Ohio painter's Avatar
 
Trade: Painting and wallpaper
Join Date: Dec 2011
Location: Central Ohio
Posts: 1,456
Rewards Points: 2,666

Re: Charging For Tool Use ?


If I rent equipment I itemize that cost in my estimate and invoice, if it is a piece of equipment I own then I just add it to my labor costs. Do others show the equipment cost of equipment they own ?
Ohio painter is offline  
Old 03-13-2019, 07:18 PM   #6
Pro
 
Fouthgeneration's Avatar
 
Trade: Masonry
Join Date: Jan 2014
Location: Mid west
Posts: 2,147
Rewards Points: 7,687

Re: Charging For Tool Use ?


Anything that the average high- journeymen/ master doesn't carry daily in My trade:

I tend to charge ~50-60% of the daily rental for each day the tools/system is used...

Enclosures, used up components the usual 115 % plus the labor time mobilizing/ demobbing.

Diamond blades, cold metal blades, anything that cost $ both lowers my time charges...

My small (180.00$) SDS bosch "bull-Dog" ~8 Amps x 120 Vac Hammer-drill, box has about 400.00$ plus of drill bits and hammer chisels....

An complete insurance inventory every year, with digital pictures/Serial #s, can easily be used to update your tool list for taxes, and depreciation.

I try to put the year and month of when the item was but into use.
It helps my spot the sticky fingered, and the very careless tool busters that constantly need NEW TOOLS because they destroyed old ones through abuse...
But don't get to tight or the men will under use your tools do fear of punishment for wearing one out in service.

All tools will wear out, if they aren't, maybe you didn't need to own that one?


Some contractors can get a little silly buying hobby tools and materials under the guise of using them at work, the rental charges on high $ tools/machines would refute this type claim by the various tax men.

New Tech can't be free, for a surviving contractor, it should Lower end price and or improve the product....
But don't high light any business techniques that are the main stay of your advantage over the completion.

Let them chose from high tech fast or slow old school + more $

Next OSHA cycle, I could see a non-business friendly Party pretty much ban any use of ladders where a lift will fit in.......

I know a Tree cutter that use little walk behind skidsteers, (~35-40 K$ with attachments, that lets him keep on older workers, that add a skill/experience reserve to his crews and still allow the older men to produce...

Any Gas powered tool will need more yearly maintenance then an electric tool, usually gas/diesel tools have more capacity.

Don't forget to add for the new level of OSHA regs regarding any dust production involving any type of silica containing materials.

And finally You need storage space to keep all those tools used less then once a month....
__________________
I might be an Idiot, but I know things that You don't: Please wait till after you get my know-how to insult me....

Last edited by Fouthgeneration; 03-13-2019 at 07:29 PM.
Fouthgeneration is offline  
Old 03-13-2019, 07:58 PM   #7
Pro
 
hdavis's Avatar
 
Trade: remodeling
Join Date: Feb 2012
Location: CoastalME
Posts: 22,036
Rewards Points: 4,498

Re: Charging For Tool Use ?


Sort of. Specialized tools I buy for one job I may expense or break up the expense over a couple jobs.

Mostly the tools are simply an expense of doing one particular type of job. When I bought my thermal imager years ago, there was a price for the first job, and from there it's $1 a picture with no analysis.
hdavis is online now  
Old 03-14-2019, 04:27 PM   #8
Pro
 
dayexco's Avatar
 
Trade: entrepreneur of excavating expertise
Join Date: Mar 2006
Posts: 6,263
Rewards Points: 600

Re: Charging For Tool Use ?


Any blades, bits, other wearing consumables I billed separately.

Cost and maintenence of that tool was on my overhead.

Sent from my SCH-I545 using Tapatalk
dayexco is online now  
The Following User Says Thank You to dayexco For This Useful Post:
Fouthgeneration (03-14-2019)
Old 03-14-2019, 05:44 PM   #9
Pro
 
Fouthgeneration's Avatar
 
Trade: Masonry
Join Date: Jan 2014
Location: Mid west
Posts: 2,147
Rewards Points: 7,687

Re: Charging For Tool Use ?


Some how I got stuck on less then 2-4 thousand dollar items....

My telebooms (~90,000 US$ for a 34'/10 meter x 3 Ton machine)I charge out at their REPLACEMENT cost, otherwise inflation WILL eat your profits.

Plus fuel, oil, TIRES & flats, and of course the operators time....And added insurance + a fraction of my deductable


Tax wise, I think you're are stuck at actual price paid... call a pro accountant.

I charge the large capital items similar to Labor with added Mob & demob, mostly delivery, and special cost such as added insurance and required training = over and above traditional (OH +P) margins.
And finally an escrow fund for major repairs, and replacement parts, broken and wore, your dealer/renter should be able to give some good #s for your type of work.

Don't forget some items need special storage (costs), like wood OSHA plank that last several years longer if keep bone dry, off the ground, and dark when not on a scaffold.

Did you have to add on to the shop for tool storage?(the space the fork lift is in?) keep a dry Van semi trailer on site?

Ditto on the oversized generators and or Air Compressors to start the large motors on the company tools...Or the added annual maintenance expenses of combustion engines, Every stale gas tank is a yearly problem, IMO. Don't forget the gas and oil delivery costs.

My briefcase and Cell phone are my 15% Overhead & P, everything else IS EXTRA
__________________
I might be an Idiot, but I know things that You don't: Please wait till after you get my know-how to insult me....

Last edited by Fouthgeneration; 03-14-2019 at 05:49 PM.
Fouthgeneration is offline  
The Following User Says Thank You to Fouthgeneration For This Useful Post:
cedarboarder (03-15-2019)
Old 03-15-2019, 12:30 PM   #10
Pro
 
Fishindude's Avatar
 
Trade: Industrial
Join Date: Aug 2017
Location: Indiana
Posts: 327
Rewards Points: 690

Re: Charging For Tool Use ?


Yep, our T&M proposal terms read something like this:

Equipment and vehicles will be charged to the job at rates equal to or less than prevailing local rental rates. No charge for tools under $500 replacement value.

Small stuff is covered by overhead markups, and we typically price the bigger stuff 10-20% below what they can rent it elsewhere for, so they can't complain about our rates.

Make sure you charge for all of your consumables too; bits, blades, temporary protection materials, safety supplies, etc., etc.

Advertisement

Fishindude is offline  
The Following 2 Users Say Thank You to Fishindude For This Useful Post:
Ohio painter (03-15-2019), sunkist (03-16-2019)


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Charging Battery Tip Big Shoe Tools & Equipment 25 03-14-2014 06:47 PM
Charging for estimates aaron_a Business 9 01-25-2014 09:32 AM
Is anyone charging for estimates? EricMentalewicz Business 7 10-07-2012 08:32 AM
what are you charging now to paint d+jhomeservices Painting & Finish Work 2 04-19-2012 10:05 PM
Charging for Quotes..... an in depth discussion. Chasing Dreams Business 53 02-09-2012 11:13 PM

Join Now... It's Fast and FREE!

I am a professional contractor
I am a DIY Homeowner
Drywall Talk is for
PROFESSIONAL CONTRACTORS ONLY!

At DrywallTalk.com we cater exlusivly to professional contractors who make their living as a contractor. Knowing that many homeowners and DIYers are looking for a community to call home, we've created www.DIYChatroom.com DIY Chatroom is full of helpful advices and perfect for DIY homeowners.

Redirecing in 10 seconds
No Thanks
terms of service

Already Have an Account?