Intermediate Equipment Handbook
Intech Associates
tractor tests on new equipment in the USA suggest average figures of 0.243
litres/hour/pto kW (Reference 11). Fuel theft and losses can be considerable and
difficult to control. It is important to keep good control of its security, issue and
use, assisted by good record keeping.
23. Calculate the DAILY FUEL COST based on the formula shown and insert the
figure in the Box G.
24. Insert wages, allowances and other associated costs (such as overnight
allowances, housing allowances, pensions or insurances) in the spaces provided
for each category of personnel necessary for the operation of the equipment.
Insert the total OPERATORS DAILY COSTS in the Box H.
It is important to take account of any personnel costs for days that the equipment
is idle, for whatever reason, and the operators and assistants are still drawing
wages and allowances etc. The suggested approach is to calculate the annual
payroll costs for the operator, assistant, etc., and divide them by the number of
expected working days (equivalent working days = D3/C4).
25. Calculate the SUB-TOTAL FOR OPERATING COSTS ( X = E + F + G + H ).
26. From records and estimates calculate appropriate daily allowances for the
various overheads including risks. These should include yard, security and
garaging costs, as well as mobilisation/demobilisation (transporter) costs if these
are not included elsewhere or separately charged. It is suggested to base
overheads costs on the business’ annual accounts figures or budgets; total the
figures for the complete fleet being managed and assign a proportion to each
piece of equipment. It is wise to add a ‘contingency’ component for unforeseen
costs or eventualities. Only local experience will allow a reasonable assessment
to be made for this. Divide the annual figures by the number of days that the
specific equipment item will be used (D3/C4). Enter the sum of the individual
overheads in the Box Y.
27. Decide the Profit Margin to be applied and enter this in the Box Z
And Finally ……….
28. Calculate the TOTAL COST TO BE CHARGED ( = W + X + Y + Z).
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