Hourly rate for multiple pieces of equipment/one operator

shaggy650 said:

When I worked for a small contractor we did a lot of hourly work. He would charge for mobilization for each machine,and we would charge for the most expensive machine on job all day. So if they wanted an excavator on site (I think he charged 150hr) but I only ran it 2 hours, and ran a backhoe (I think 80hr) the rest of day we charged for the excavator all day.

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This is an interesting approach. I, too, struggle sometimes how to charge. But, I'm not sure my customers would approve of me charging them 12 hrs for the hoe if I only ran it 3 and was in the loader the rest of the day.

DIRTHAWK said:

Well if you're the only man on the job it is hard to say that both pieces are working at the same time. If you're loading a truck and jumping back in it to go dump then I would say you could justify charging for that truck all day, but if you're dumping 5 miles away the hoe/loaders hr meter should be off until you return. If the dump site is on site that's different. Charging by the load could solve this problem. As far as the rental thing, that's a tough spot. A lot of times if it is a scenario where we are doing a large site we charge by the ton or yard. exp - $1 a ton to compact.

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This always seems to be a judgement call for me. If I'm hauling dirt out of a borrow site for fill, then I charge a per yard loading fee, usually $.50 to $.75 per yard. The truck, if onsite, is hourly for the whole time, if it's going offsite, then I have a price schedule depending on mileage. If I'm cutting grade for a building or grain bin site, the truck basically stays the same, but I charge the hourly rate on the hoe. How I arrive at that number is I will time a few loads with truck and take the average times how many loads and subtract that from total time with hoe. I have never been a fan of using the hour meter for hours because I will not shut the engine off as soon as bucket hits the ground. If I'm gone less than five minutes, I'll just let the machine idle. Over five, I'll turn on the auto stop and let it do its thing. Interestingly enough, your figure for compaction is pretty close to me. $1.50/yd³ for level and grade, $1.50/per for compaction.

CM1995 said:

I don't do much hourly work, mostly hard bid. I can make more money on small commercial site jobs where the equipment is floated to and stays there for a month or so. Usually there are change orders that add to the till as most of these sites are infill sites with all sorts of unforeseen conditions.

When I do hourly work and two pieces of iron are needed for the job but only one operator, I charge a 4 hour min. for every day and mob for each piece in and out. Then charge for every hour worked per day per piece above the 4 hour minimum. So everyday the piece of iron is on the job, each one gets 4 hours whether they're used or not.

Might not work for everyone but that's how I do it.

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Man, I wish I could get away with that price schedule. Would you mind sharing some of your hourly rates? Maybe you guys can't get as much per hour, but at the end of the day we're still close? My 210 is $160, 3 yd³ loader is $125, CTL gets $105, truck $135/hr, or roughly $10/loaded mile up to 5, $9 up to 10, $8 up to 20, etc. My minimum I like to run for is $2/running mile.

Customers sometimes balk at minimum charges on equipment, I charge four hours plus an hour transport as a minimum on mine, but I also give the customer the option of going with the current rental rate for the piece of equipment plus an hourly rate, with no minimum, for myself. Funny thing is that the second way is almost always more money, but people feel like they aren't getting 'taken'.

This always seems to be a judgement call for me. If I'm hauling dirt out of a borrow site for fill, then I charge a per yard loading fee, usually $.50 to $.75 per yard. The truck, if onsite, is hourly for the whole time, if it's going offsite, then I have a price schedule depending on mileage. If I'm cutting grade for a building or grain bin site, the truck basically stays the same, but I charge the hourly rate on the hoe. How I arrive at that number is I will time a few loads with truck and take the average times how many loads and subtract that from total time with hoe. I have never been a fan of using the hour meter for hours because I will not shut the engine off as soon as bucket hits the ground. If I'm gone less than five minutes, I'll just let the machine idle. Over five, I'll turn on the auto stop and let it do its thing. Interestingly enough, your figure for compaction is pretty close to me. $1.50/yd³ for level and grade, $1.50/per for compaction.

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Absolutely, might have to make a round or 2 to figure what you can get per mile so that it comes out right..

Tonkatoy said:

Customers sometimes balk at minimum charges on equipment, I charge four hours plus an hour transport as a minimum on mine, but I also give the customer the option of going with the current rental rate for the piece of equipment plus an hourly rate, with no minimum, for myself. Funny thing is that the second way is almost always more money, but people feel like they aren't getting 'taken'.

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Now we're getting somewhere. So, you charge what the daily rental rate is for the machine plus an hourly rate? Two points: First, what do you use for the rental rate? Straight daily, weekly divided by 5, monthly divided by 21, or some other figure? Only reason I ask is rental rates around here are usually established on the 10 hour day, 4 day week, 3 week month schedule. Second, the hourly rate you mention, is that a machine rate, operator rate, or combination?

Shimmy1 said:

Now we're getting somewhere. So, you charge what the daily rental rate is for the machine plus an hourly rate? Two points: First, what do you use for the rental rate? Straight daily, weekly divided by 5, monthly divided by 21, or some other figure? Only reason I ask is rental rates around here are usually established on the 10 hour day, 4 day week, 3 week month schedule. Second, the hourly rate you mention, is that a machine rate, operator rate, or combination?

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I use the daily rate, but do not include insurance or transportation, then charge an hourly rate, used to be $45/hr, now it is $50/hr, for me/fuel/etc. My normal minimum is $400 for CAT 305.5, $500 for CAT 305ECR and 246 with Loegering undercarriage. Minimum for Daewoo solar55 and D5 hystat is $625 and for the 312CL it is $750. Many times I will adjust these rates down a little if it is a repeat customer or if it is a really small job. Attachments are extra. 95% of the time I just bid the job so both parties know what to expect.

Jim

Tonkatoy said:

Minimum for Daewoo solar55 and D5 hystat is $625 and for the 312CL it is $750. Many times I will adjust these rates down a little if it is a repeat customer or if it is a really small job. Attachments are extra. 95% of the time I just bid the job so both parties know what to expect.

Jim

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Does anybody complain about $150/hr on the 120? Around here, $145 is going rate for 200 class, I have been getting away with $160 because I've been around for 25 yrs and my customers know what they're getting. That being said, some customers do have my competition do some things, usually because I'm usually so busy I can't get be at everyone's door Monday morning.

No complaints really, but again I almost never work by the hour, people here usually want a bid price and I am competitive in that arena.

Next question, are your customers usually getting multiple bids, or are they asking you for a price and then that's what you do it for.