Hire for 23 week scaffold program? (1 Viewer)

RSSL

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Alright Lads n Lasses.

Currently quoting for a progressive build on a school - 14k worth of work, give or take a few quid !!

Client states the scaffold program will be 23 weeks in length...

What's the norm for charging hire for this type of thing?

We've done plenty of large one off jobs and smaller new build sites but have so far managed to stay away from this type of work - i.e.. long term progressive build so any info would be greatly appreciated.

Cheers!
 
FOC for 23wks then shiiit loads after to make up ur shortfall
 
Thanks for the reply southern.......

So that's the norm on these long term progressives is it?

No one charges any extra on the front end to compensate or begins any hire charges earlier than the clients stated program/schedule?

Is this all fairly standard?
 
That's half a year. Price it as if you were hiring material from Gen/Beaver etc. Then adjust your price so it makes you competitive but don't finance their job. The QS will probably try to rape in 6 months. Don't give in to the spotty **** stick to your signed and agreed quotation.
 
Most scaffolding companies build their quotations based on 4 major costs that make up the contract supply of scaffolding. 1. the cost of labour to erect/dismantle and if necessary adapt. 2. The depreciation cost of materials for the stated period of hire. 3. the cost of transporting the materials to and from yard to site. 4, Overhead and profit based on he running cost of your business. (in some circumstances a fifth element of allowance for additional contract expense may be added EG Design)
When raising your quotation you will state the period of hire allowed per item and inform the customer of the additional hire rate per week after which should reflect hire cost for materials charged by the major hire companies.
The fact your customer has requested you to price this way is because he is used to paying additional hire. Not to charge him would reduce the profit margin you could achieve and devalues your business and the scaffolding trade in general.
 
Well we eventually quoted for a rolling hire charge on any materials standing longer than 6 weeks. Was not willing/couldn't afford to just let it stand FOC for 23 weeks on the hope of making it back thereafter. See what happens .........
 
Always remember if you put your kit on site FOC when your next job comes in you may well need to replace that kit, as Binthere has suggested, through a major hire firm at their rates.
 
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Yes we totally agree, Alan. That's why we opted for the rolling hire. We've set our stall out. For us to continue to run this business correctly with steady growth, we are not willing to offer materials on site FOC or to even try and rely on just the penalty hire charges at the end of a long free period. For us it's either ongoing rolling hire or we don't want the contract and we'll use the equipment to make profit elsewhere.
 
2/3 of your weekly hire rate for full period
or
full rate for 2/3 of the period

they are one and the same
 
6 weeks free inclusive ,
plus 17 weeks at your X hire rate would be my tender price.
And if they don't want it that's their choice.

Your boards cut to bits , tube covered in cement ,bent tube , lost gear ,
No way it's gonna be FOC ;)
 
FOC for 4 weeks and then
we charge 5% per week of the total cost of the project.

So it would be 5% of 14k per week on 19 weeks hire!
 
FOC for 4 weeks and then
we charge 5% per week of the total cost of the project.

So it would be 5% of 14k per week on 19 weeks hire!

Interesting….and good work if you can get it!

How, if asked do you justify the hire being a percentage of the value of the price?

A 10.00 x 4.00 independent and a 10.00 x 2.00 hanger could have very similar quantities of kit but vastly different values?
 
Interesting….and good work if you can get it!

How, if asked do you justify the hire being a percentage of the value of the price?

A 10.00 x 4.00 independent and a 10.00 x 2.00 hanger could have very similar quantities of kit but vastly different values?


The percentage is worked out on the total cost of the job and not on the amount of gear in it, so therefore the percentage per week would be greater on a hanger than that of a small independent scaffold.
 
Morning All,
Good to see some interesting stuff on here for a change.
Fascinating to see differing opinions on the one topic.

I think Scarf Folder has the point, a % of your hire cost or your period.
Hire is there to pay for the kit you have purchased or may have to purchase to replace it either by purchase or cross hire. It should always form part of your quotation, even if you take a view on it from a commercial aspect at a later date. IE use the hire as a negotiation tool, a yard full of kit earns no money but nor does it suffer any loss or damage.

I was also interested in StoneScaffolding’s comment re 5% of contract value being the hire charge, I have heard of this but never done it so not sure what the logic behind it is, having also read Scarf folders comment I would have the same question?

If you have a contract that is high in “labour” or “risk” or perhaps even “travel” how do you relate the hire of your equipment to the contract expense?
Put another way, if you have two identical jobs for the same customer 10 x 10 x 10 one at ground level one on top of Canary wharf with only the stairs to get your kit up and down one costs say £100 the other £10,000 both scaffolds have identical kit but differing cost the hire on one £5 the other £500.

How do you rationalise this with the customers surveyor?
 
The percentage is worked out on the total cost of the job and not on the amount of gear in it, so therefore the percentage per week would be greater on a hanger than that of a small independent scaffold.

I am not sure how that works, a double and a foot of tube cost the same whether they are used in a 10k job or a 100K Job.
 
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