We treat our Equipment Fleet as a cost center, not as a profit center. As such, we strongly believe in the dual rate model of an Ownership rate and an Operating rate. These are updated annually using hard empirical data of the cost of equipment by category and actual hours usage. This approach is considered by many to be "Best Practice." The best detailed explanation I have found of this can be found in Mike Vorster's excellent book "Construction Equipment Economics," which is available on Amazon. If the name looks familiar, Dr. Vorster is a frequent speaker at the CFMA National Conference and considered by many to be a foremost authority on Construction Equipment Management.
Herb Brownett CCIFP
Senior Vice President
825 Reading Road
P.O. Box 528 Bowmansville, PA 17507 P 717-445-4571
M 610-823-7615 F 717-445-7789