EP 1110-1-8
(Vol. 5)
31 July 03
CHAPTER 3 ADJUSTMENTS TO HOURLY RATES
SECTION I. GENERAL
3.1
Contents
This chapter explains the procedures for adjusting the hourly rates shown in
table 2-1.
3.2
Basis for Equipment Rates
The rates shown in table 2-1 are based on the catalog list price of equipment
manufactured in 2000 (3 years old). Area factors used to compute regional ownership
and operating expenses are listed in appendix B. All equipment hourly rate elements
for average and severe conditions are given in table 2-2. Individual cost elements,
which comprise the total hourly rate, are shown in table 2-2. These hourly rate
elements are listed by equipment ID No., which corresponds to the equipment shown in
table 2-1.
a. Ownership costs consist of two cost elements: depreciation (DEPR) and
facilities capital cost of money (FCCM). These elements are located in table 2-1 and
table 2-2.
b. Operating costs consist of five cost elements: fuel (FUEL); filters, oil, and
grease (FOG); repairs (REPAIR); tire wear (TIRE WEAR); and tire repair (TIRE
REPAIR). These elements are located in table 2-2.
3.3
Equipment Rate Adjustment Tables
average hourly rate and table 3-2 is used to adjust the standby hourly rate shown in
table 2-1.
3.4
Determination for Use of Equipment Rates in Table 2-1
There are two methods to obtain an hourly equipment rate. The first method is
to use the rates in tables 2-1 and 2-2, and modify them as described in this chapter.
The second method is to use the step-by-step rate computation shown in figure 2-1.
The equipment rates shown in tables 2-1 and 2-2 may be used instead of a step-by-step
rate computation when both of the following conditions are met:
a.
Cost or pricing data is not available.
b. The contractor's actual unit of equipment is listed in table 2-1 or equivalent
in size, capacity, horsepower, and value to the unit of equipment listed in table 2-1.
3-1
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