EP 1110-1-8
(Vol. 8)
31 July 03
Adjustment Calculation:
Hourly Standby Rate Adjusted for Actual Age
=.31/hr
(Hourly Standby Rate) x 0.89 (Age Adjustment Factor)
=.30/hr
b. When the unit of equipment is newer than the equipment listed in table 2-1
(purchased new in 2000), use the adjustment factor in table 3-2 for the year of
manufacture. Once the adjustment factor is determined from table 3-2, complete the
adjustment calculation as shown in the example above. The step-by-step calculation
method shown in figure 3-2 may also be used.
c. When the equipment age is older than the last year shown in table 3-2 or
newer than the first year shown in table 3-2, the standby rate must be calculated using
the step-by-step methodology shown in figure 3-2.
3.14
Equipment Purchased Used
A detailed methodology for computing a total hourly rate for equipment
purchased used is not included in this pamphlet.
a. When actual cost data in accordance with chapter 1 is not available, an
hourly rate and standby rate for equipment purchased used can be computed on the
basis that the equipment was purchased new by the contractor in the year it was
manufactured. Consideration for the actual age of used equipment may require an
adjustment for overage.
b. The condition of the used equipment at the time of purchase should
consider the extent of capital improvements, mechanical condition, and previous hours
of operation. These conditions are difficult or impossible to determine and evaluate
when computing a total hourly rate based on actual acquisition cost.
3.15
Rate Calculation Examples
3-7
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