Saturday, April 19, 2014

Builders Plant Costing

Plant Costing ~ with the exception of small pieces of plant, which are usually purchased, items of plant can be bought or hired or where there are a number of similar items a combination of buying and hiring could be considered. The choice will be governed by economic factors and the possibility of using the plant on future sites thus enabling the costs to be apportioned over several contracts.

Advantages of Hiring Plant:

1. Plant can be hired for short periods.

2. Repairs and replacements are usually the responsibility of the hire company.

3. Plant is returned to the hire company after use thus relieving the building contractor of the problem of disposal or finding more work for the plant to justify its purchase or retention.

4. Plant can be hired with the operator, fuel and oil included in the hire rate.

Advantages of Buying Plant:

1. Plant availability is totally within the control of the contractor.

2. Hourly cost of plant is generally less than hired plant.

3. Owner has choice of costing method used.

Typical Costing Methods

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