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# Calculating cost on minimum day rate item

5 replies [Last post]
Harry Angell
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Joined: 13 Oct 2014
Posts: 17
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Hi,

We have a scenario where a crane costs us say £1,500 per day (8hr day). Even if the crane is only used for 1hr, we still get charged for the whole day. if we go over 8hr a day then it's charged at £45 p/h.

I don't really know how to establish a payrate using these figures. £1,500/8=£174p/h so I cannot simply use that pricing per hour, and that wouldnt accomodate the minimum unit of 1 day @ £1,500.

I found a post here http://www.planningplanet.com/forums/microsoft-project/545518/how-specify-rate-day-regardless-hours-worked-day which suggested using a hammock task, but quite often the tasks where a crane would be required wouldn't be consecutive.

Any thoughts would be greatly appreciated.

## Replies

Rafael Davila
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Joined: 1 Mar 2004
Posts: 4915

Mike, calendars and partial workloads can complicate the calculations.  How would you model the cost of the crane for the following scenario?

Crane sharing is very common.

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Joined: 5 Feb 2001
Posts: 2615

Mike,

I do not understand your proposal. Please explain how these resource shall be assigned and how the project shall be leveled.

Mike Testro
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Joined: 14 Dec 2005
Posts: 4406

Hi Harry

The only way I can suggest is to set up 8 crane resource setcions each with 1 to 8 cost hours attached and allocate accordingly to the relevant task.

You then have the problem of delivery and collection costs at each deployment unles it is on unpaid standby when not in use.

Best  regards

Mike T.

Harry Angell
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Joined: 13 Oct 2014
Posts: 17
Groups: None

Hi Mike,

It's a mobile crane that would be called off as and when needed.

Harry

Mike Testro
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Joined: 14 Dec 2005
Posts: 4406

Hi Harry

Is it a mobile crane that is called as and when or a fixed crane that is there all the time?

Best regards

Mike T.