Do you guys bill for drive time?

[thebobcatkid86]

I ask this in the heavy equipment forum because I want to know pertaining primarily to excavating guys. I just would like to know if and how you guys bill for drive time. Does the clock start when you leave the yard? Do you typically just automatically figure it into the job price? If at all, do you just figure fuel into the job price or do you pay yourself for your drive time as well?

I am just curious becuase I have a couple of friends in other trades that pay themselves nearly 70% of their full work rate for drive time. I asked one of them and he said it really depends on the trade. He didnt know about the excavating business and I dont know either so thats why Im asking. So far I have just been charging for my fuel cost if its more than a 10 mi. drive (10mi./gal) and have just been working that into the job costs. For me its typically no more than 15 to 20 mi. and usually less.

[Gravel Rat]

The clock starts when we get to the job nobody charges a customer travel time for you to get to the job. The only time I charge time when I leave the home is when I'am trucking. In my area usually it only takes 10-30 mins to get to work never paid attention to how many kms/miles.

You do charge a fee to the customer for moving your equipment to the site or hauling materials to the site.

[start2finish]

gravel rat is right. exactly how we figure. unless it is snow removal and we charge road time if the job is hourly.

[thebobcatkid86]

You do charge a fee to the customer for moving your equipment to the site or hauling materials to the site.

Thats actually what I meant. I shouldve phrased it differently. With the equipment I have now, most of my jobs are small. I am on jobs with my machine often only one or two days. When I go to/from somewhere with the loader is what I meant. I never charge when Im just going to/from the site on a multi-day job. So what do you guys charge for those things?

[ProLandscapes]

We charge a $200 site fee for setting up on site then $85hr for the skidsteer and $85hr for the excavator. $100 per load plus materials for the dump truck.

[Gravel Rat]

Try find out what the other contractors in the area charge for a move in charge and be competitive to that. You definatly don't want to be higher than the others.

[IHI]

With the way gas prices keep going up, I have been adding it into the bid or charging at least one way. Why should it be coming out of our pocket? Almost has to compensate for the bids you went out on and didn't get.

[start2finish]

when you are bidding a job it does not matter, I was refering to jobs that we billed hourly or at cost plus.

[Gravel Rat]

There are ways of adding the cost of travel time the bills. A customer can and will say to you why are you charging my travel time and will ask why did you take this job if you don't like traveling the long distance. If your going to be taking on jobs that require lots of traveling your going to have to eat that cost or try factor it into your price and end up not being competitive.

If the customer hires you and knows your not a local in the area company they are going to expect you are going to charge a little more. So if they start squeeling about extra fees when you give them a estimate you may not want to work for them.

Say you are taking a job that requires a hour of traveling each day you need to factor in 10 bucks a day in gas plus wear and tear on the pickup.

[start2finish]

and windshield time for the employee(s)

[Scag48]

On jobs that we bid, we have a set move-in charge of $150. For T&M jobs, we bill for 1 way of travel, which includes loading, binding, driving to the site, and unloading. Our windshield time is usually less than 15-20 minutes, so for most jobs we just charge an hours worth of time. We bill for only 1 way of travel as the next job pays for the travel off the current site, we don't milk it both ways although we could very easily.

[Shadetree Ltd]

If you are moving your machine to or from a job it should be paid for period. If you don't charge for this than you are partially working for free. I can stay in the comfort of my home and work for free without fuel, insurance and vehicle expenses. Any job that requires the machine must realize there are costs to moving it. I have a flat delivery charge that covers both ways. One charge delivers the machine and picks it up at the end. The Ditch Witch is $65-85 depending on drive time and the Bobcats are $135-185. Call a local towing company that transports equipment and ask them how much they would charge to move your machine. You can also call any rental yard and ask them what their delivery and pick up charges would be. If you only want to own a job, leave it as is. If you want to own a business then charge for all billiable time spent on a job (onsite or not) because the company would have to pay employee wages whether it is you or someone else.

[RockSet N' Grade]

ShadeTree.....that's my thinkin'. An aquaintence of mine did tractor work last year and did not charge for transport, and always gave away an hour or two "because the people were nice folks". He gave his rig back to the bank this winter, and is now looking for a job.......do you think "those nice folks" are gonna help him out now? This is a business.......billable hours......huge expenses in the thousands made up for by working for hourly rates.........ya just gotta charge or you won't be here tomorrow.

[dozerman21]

If you are moving your machine to or from a job it should be paid for period. If you don't charge for this than you are partially working for free. I can stay in the comfort of my home and work for free without fuel, insurance and vehicle expenses. Any job that requires the machine must realize there are costs to moving it. I have a flat delivery charge that covers both ways. One charge delivers the machine and picks it up at the end. The Ditch Witch is $65-85 depending on drive time and the Bobcats are $135-185. Call a local towing company that transports equipment and ask them how much they would charge to move your machine. You can also call any rental yard and ask them what their delivery and pick up charges would be. If you only want to own a job, leave it as is. If you want to own a business then charge for all billiable time spent on a job (onsite or not) because the company would have to pay employee wages whether it is you or someone else.


ShadeTree.....that's my thinkin'. An aquaintence of mine did tractor work last year and did not charge for transport, and always gave away an hour or two "because the people were nice folks". He gave his rig back to the bank this winter, and is now looking for a job.......do you think "those nice folks" are gonna help him out now? This is a business.......billable hours......huge expenses in the thousands made up for by working for hourly rates.........ya just gotta charge or you won't be here tomorrow.


You guys saved me some writin' time.:) Well said!:clapping:

[ians06]

Hey bobcatkid how are things in olmstead? Im from Berea!!

[grassmanvt]

If you are moving your machine to or from a job it should be paid for period. If you don't charge for this than you are partially working for free. I can stay in the comfort of my home and work for free without fuel, insurance and vehicle expenses. Any job that requires the machine must realize there are costs to moving it. I have a flat delivery charge that covers both ways. One charge delivers the machine and picks it up at the end. The Ditch Witch is $65-85 depending on drive time and the Bobcats are $135-185. Call a local towing company that transports equipment and ask them how much they would charge to move your machine. You can also call any rental yard and ask them what their delivery and pick up charges would be. If you only want to own a job, leave it as is. If you want to own a business then charge for all billiable time spent on a job (onsite or not) because the company would have to pay employee wages whether it is you or someone else.

And there you have it. The day a trailer dealership gives me a trailer and dmv says, tax and reg are free today, then the gas staition says, "your moneys no good here", thats the day I can start transporting equipment for free.

[thebobcatkid86]

This all helps alot. I really appreciate the advice. Thanks.