EP 1110-1-8
(Vol. 11)
31 July 03
Example: Assume that table 2-1 includes a crane (category C80,
subcategory 0.02) manufactured in 2000, has a total hourly rate of per hour, and an
ownership rate of per hour. If an equivalent crane owned by a contractor was
manufactured in 1974 (maximum life 1989), this crane is overage and the total hourly
rate is determined as follows:
Table 2-1 Rate and Adjustment Calculation:
Total hourly rate
=
.00/hr
Ownership rate 2000 (DEPR + FCCM)
=
-(.00)/hr
Ownership rate 1974 adjusted for age
(Ownership rate = .00) x (0.88 use the oldest age
adjustment factor from table 3-1, for category C80,
subcategory 0.02, the last year shown.)
=
+.40/hr
Total hourly rate for equipment manufactured in 1994
=
.40/hr
3.13
Standby Rate Adjustment for Equipment of a Different Age than Table 2-1
If the equipment age is other than listed in table 2-1 (purchased new in 2000),
adjustment to the hourly standby rate is required. When the age of the equipment is
newer or older than the age of the equipment listed in table 2-1, table 3-2 factors may
be used to adjust the hourly rate, otherwise the step-by-step calculation method is
necessary. The result is a standby rate adjusted for the actual age of the equipment.
a. Standby rates for overage equipment are based on the actual age of the
equipment. The age adjustment factor given in table 3-2 is multiplied by the hourly
standby cost shown in table 2-1 for the listed or comparable unit of equipment. This
results in a standby rate adjusted for the actual age of the unit of equipment being
considered.
Hourly Standby Rate Adjusted for Actual Age =
Hourly Standby Rate x Age Adjustment Factor
Example: Assume that table 2-1 includes a crane (category C80,
subcategory 0.02) manufactured in 2000 and has a standby rate of .31 per hour. If
an equivalent crane owned by a contractor was manufactured in 1994, the hourly
standby rate is determined as follows:
Hourly Standby Rate (table 2-1)
=.31/hr
Age Adjustment Factor (table 3-2)
= 0.89
for category C80, subcategory 0.02, and for 1994 (actual year of
manufacture)
3-6
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