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Equipment Cost Tracking


Equipment costs account for 10-15% of maintenance spending and up to 20% during a turnaround. At any given time, cranes, trucks and cherry pickers are either being utilized or sitting idle. The accountability, utilization and cost of equipment are important elements that need to be addressed in the overall contracting, maintenance and capital strategies.

Complexity of Equipment Rental Rates in a T&M Contract

EQUIPMENT

Track has developed a unique offering for companies that require the highest degree of accountability with their equipment costs. The equipment module provides contractual and administrative benefits as follows:

CONTRACTUAL

  • The use of Track Software Suite's standard equipment definitions and rate formats enables the owner to obtain consistent bidding and easily facilitates bid analysis
  • In addition to the standard hourly rate for the various equipment types, the owner is able to introduce into the bidding process a diverse set of additional bidding variables (daily, weekly and monthly maximum billable hours) that create cost saving opportunities
  • Error-free downloading of equipment rates via Track's import tool avoids costly mistakes during the billing cycle
  • The successful bidder's rates are locked into Track eliminating unauthorized alterations
  • Track ensures that "other" costs associated with equipment charges are contractually compliant; fuel, repairs, mobilization, demobilization, etc. can only be billed as stipulated in the contract agreement
  • Avoidance of double billing, which often goes unnoticed if the invoices are routed to separate owner representatives

ADMINISTRATIVE

  • Near-time (next day) allocation allows owner's representatives to closely link charges to the actual work performed in the field
  • Track informs the contractor of what they have earned vs. relying on the contractor to invoice the owner for what they believe is owed
  • Track automatically adjusts the rental cost allocated by the contractor when hour thresholds (daily, weekly or monthly) are reached eliminating the contractor's ability to make these cost related decisions
  • Error-free rate extensions within the allocation process since the equipment rates are locked into Track and cannot be modified
  • The owner has the capability of comparing contractor rates for a specific piece of equipment across multiple vendors allowing selection of the most cost effective rental
  • Timely cost reporting and historical data is retained in Track for future use and analysis
  • Elimination of the paper intensive equipment rental process due to the paperless functionality of Track
  • Potential for resource re-deployment -- move A/P clerks to Track administrators