Equipment as overhead or line item?

Discussion in 'Landscape Architecture and Design' started by gvandora, Sep 1, 2004.

  1. gvandora

    gvandora LawnSite Member
    Messages: 143

    I'm not sure how you all include the cost of equipment in your estimates. I'm not talking about small equipment like rakes and shovels, or even expensive small tools like cutoff saw, but rather large equipment like bobcats, tractors, and mini-excavtors.

    When you do your job costing are the large pieces of equipment simply included as a part of G/A and thus as part of overhead or are they charged out per hour on a job? I'm not trying to ask if there is a specific line item on a proposal for "Tractor Fee," but just internally when you calculate your numbers.

    Thanks all!
  2. steveair

    steveair LawnSite Bronze Member
    Messages: 1,073

    Go out and buy a book called "Estimating For Landscape and Irrigation Contractors" by James R. Huston, it has all the answers and more.
  3. capital

    capital LawnSite Member
    Messages: 118

    their are multiple ways to calculate your equipment cost and some say to go with a line item and some say to factore that in as part of your hourly. We used to factore our equipment cost into the bid and have it in the hourly or material cost. We are currently changing our pricing structure to more fairly recover our equipment cost and have decided to bill cost as a line item on bids now .
  4. D Felix

    D Felix LawnSite Bronze Member
    Messages: 1,898

    Right now we charge for any power or rented equipment on the job. I guess I shouldn't say that, 'cause we don't charge for the blower, shears, chainsaw, etc.....

    Anything bigger usually gets charged to the job. Not on an hourly basis, but the equivalent of what a daily rental would be for a comparable piece of equipment.

    Part of the reason for this is in case something breaks, it's already budgeted in so we can rent something to get us through the day.

    We may change this method, but that's how we're doing it right now.

  5. Dwan

    Dwan LawnSite Member
    Messages: 87

    each piece is a seperate line item. That goes for any power tool from power saw to excavator plus operator.
    If I suspect the customer is just using me to get information then the bid represents a lump sum price only. but my paperwork brakes down every aspect of the job. (Quick Books Pro)

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