Equipment Costing

The equipment fleet can quickly become the “money pit.” For many contractors the investment in equipment consumes more equity than any other group of assets. Sound management practices can be a significant aid in keeping a contractor competitive during difficult times. Through years of experience with “heavy & highway” and utility contractors, The Sutor Group has found that effective fleet management is a distinguishing factor among highly successful contractors. Some of the more common areas in which The Sutor Group assists contractors relating to equipment fleet management are as follows:

• Establishing and assessing internal equipment rates. Blue Book, AGC/Blue Book, Cost Reference Guide base comparisons
• Financial management, purchasing controls and repairing tracking and control processes
• Integration of equipment costing into financial and accounting systems and management reporting. Equipment cost pools and subsidiary ledger methods
• Equipment numbering and fleet organization methods and systems
• Evaluating and designing consistent and streamlined processes for charging owned equipment utilization
• Routine maintenance reporting, tracking and control processes
• Buy versus rent evaluation techniques