Equipment cost basis
A true internal rate per machine covering ownership, maintenance, fuel, and transport, charged to the projects that used it.
Where this step sits
The rules and targets underneath it
Contractors where this step did the work
What owners ask
What is the equipment cost basis step?
A true internal rate per machine covering ownership, maintenance, fuel, and transport, charged to the projects that used it. It's step 02 of 8 in CONTROL, drawn from chapter 2.
Does the order make a difference?
Yes. This step depends on job cost structure, so installing it first produces numbers nobody trusts.
What does it change downstream?
It feeds overhead calculation, estimating system. A change here moves every one of those.
What breaks if I skip step 02?
1 later step reads from it: 03, overhead calculation. Skip it and that runs on numbers that were never established, so the output looks finished and isn't.
Where does step 02 sit in the sequence?
Position 2 of 8 once the dependencies are resolved. It waits on 01. 2 steps wait on it. Most owners install all 8 inside 60 days.
Wrote CONTROL, the 8 step system these figures sit inside. More about the author.