How to Calculate Equipment Cost Per Hour for Heavy Civil Bids To calculate equipment cost per hour, add a machine's ownership costs (depreciation, cost of money, insurance, taxes, and storage) to its operating costs (fuel, lube, repairs, and wear items), then divide each annual cost by the hours the machine actually works. The operator, overhead, and profit are added separately. That sounds simple, and on paper it is. In practice, an hourly equipment rate is one of the easies

Unit Price vs. Lump Sum Bids: How DOTs Spot an Unbalanced Bid A unit price bid pays you your bid price for each measured unit of work actually performed, while a lump sum bid pays one fixed price for a defined scope. On unit price DOT work, the agency checks every line item against its engineer's estimate, looking for prices that are unbalanced. That second part is where good contractors get tripped up. You can submit the lowest total on bid day and still have your bid questi

How to Manage Material Price Volatility in Heavy Civil Estimating If you've bid on a heavy civil project in the last few years, you already know the story: the price you quoted for concrete in January isn't the price you're paying in June. Steel fluctuates with global scrap markets. Asphalt moves with the price of oil. And aggregates, once the most predictable line item on your estimate, are now subject to localized shortages that can spike costs overnight. Material price vol

Switching Estimating Software: A Step-by-Step Guide for Heavy Civil Contractors If your team is still juggling Excel spreadsheets and a pile of half-connected tools, you’re not alone. Most heavy civil contractors build their bids this way — and for years, it’s worked well enough. But here’s the truth most contractors whisper about in forums and job trailers: That patchwork setup eventually costs more time, more money, and more accuracy than it saves. If you’re here, it’s pr

Accurate construction estimating is the foundation of successful project management. Whether you’re part of a small business or a...