EquipmentWatch Establishes New Standard for Standby and Idling Cost Calculation
New rates offer equipment managers greater insight into their equipment costs
Atlanta, Ga – November 16, 2017 – EquipmentWatch, the world leader in data, software, and insights for the heavy equipment industry, has expanded its Cost Recovery product to include hourly cost rates for standby and idling equipment. 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 equipment cost recovery.
Determining a Standard for Standby Rates
Standby refers to a situation where equipment is on the job and available for work, but is not put into operation. “Reimbursement for standby is a common practice between contractors and project owners,” explained Greg Lutz, head of product for EquipmentWatch. “But when we surveyed the industry we found that no prevailing method to determine these rates existed. In our position as the industry standard for active use reimbursement, it was a natural extension for us to include hourly standby rates in our Cost Recovery product.”
EquipmentWatch analysts determined standby rates using ownership factors of depreciation, cost of facilities capital, and indirect costs. This methodology drives the default rate provided in the product, however the software also gives project owners the option to submit their own specified standby calculation that users can easily select and apply to their rates.
Empowering Equipment Managers with Idling Rates
“Everyone knows that idling equipment costs their business money, but historically it’s been difficult to assign a dollar amount to that cost. We wanted to change that,” added Lutz. “By adding idling rates to our Cost Recovery product, equipment managers can now understand and effectively communicate the true cost of idling equipment to their team.”
Idling rates were determined using ownership factors of depreciation, cost of facilities capital, indirect costs, overhaul labor, and overhaul parts. It also includes the operating costs of electrical or fuel consumption, however they will omit the cost of lube, which some equipment managers may want to optionally include.
Meeting the Needs of the Data-Driven Equipment Manager
These new rates are the latest innovation in EquipmentWatch’s mission to meet the needs of today’s data-driven equipment manager. Along with internal charge rates, market values, retail rental rates, machine specs, serial number history and market insights, the launch of standby and idling rates provides modern contractors with the data they need to make better decisions about heavy equipment.
For additional information on EquipmentWatch, visit: https://equipmentwatch.com.
# # #
EquipmentWatch is the trusted source for heavy equipment data and intelligence. EquipmentWatch produces the leading database information products for the construction equipment industry and is the world leader in heavy construction research and serves more than 15,000 professional, high-volume users of construction and lift-truck data. Our products are valuable tools in decisions surrounding the purchase, valuation, operation, and disposal of equipment.
For nearly 50 years, EquipmentWatch has served contractors, equipment manufacturers, dealers, rental companies, lenders and insurers, and government agencies involved in heavy civil construction.
EquipmentWatch is part of Informa, the international business intelligence, academic publishing, knowledge and events group. Informa serves commercial, professional and academic communities, helping them connect and learn, and creating and providing access to content and intelligence that helps people and businesses work smarter and make better decisions faster.
Informa has over 7,500 colleagues in more than 20 countries and a presence in all major geographies. It is listed on the London Stock Exchange and is a member of the FTSE 100.
(770) 618 – 0132