#Downtime Days in Construction Equipment Rental
Downtime Days in Construction Equipment Rental
What are downtime days in construction equipment rental and how do they affect rental costs?
Downtime Days in Construction Equipment – Definition
Downtime days (also referred to as downtime, idle time, or lay-idle days) refer to the period within the holding time during which construction equipment on a job site is idle and cannot be used. The machines remain on the job site and are not transported away or deployed elsewhere. It is important to note that downtime is only considered as such when the user of the machine is not responsible for the reasons for non-use (for example, due to force majeure) and the equipment stands idle for more than ten consecutive calendar days without interruption. If the downtime period is shorter, it is counted as holding time. This generally encompasses the period during which construction equipment is deployed or available on a job site – from the day of dispatch to a job site until the day of (return) shipment to a new job site or equipment depot, or until the time of effective release notification. The time required for loading and (return) transport of the equipment is also part of the holding time.
How are Holding Costs Calculated During Downtime?
When calculating holding costs on a job site, costs during downtime are calculated at a lower percentage compared to general holding costs. While depreciation, interest, and repair costs are fully charged for the first ten calendar days, starting from the eleventh calendar day, a reduction to 75 percent applies to depreciation and interest. In addition, eight percent for maintenance and care is added, with repair costs no longer being considered. Depending on how complex the process is, additional costs may also apply for the decommissioning of the machines themselves.
Are Rental Costs Refunded by klarx During Downtime?
If you decide to rent construction equipment from klarx, you can report downtime days that occur on your job site during the ongoing rental in advance. We can then adjust and reduce the rental price accordingly. You can get more detailed information at any time from the klarx customer service team.
This page was automatically translated from German.