If only your equipment could speak up!
When a tradesperson misses hours on their paycheque, you had better believe they’ll come tell you. Diligent employees keep a log of all their hours or a summary of time sheets for each day in the pay period. When the paystub comes out… its quick math for them. Bad news for the contractor is that if the employee was not paid, they likely were not billed out on on a T&M contract for that days work. This error is often fixable if you have a forgiving inspector.
Unfortunately, we cannot expect the same outcome with equipment. In our journey to uncover billing leak points, both for the owner and the contractor, it is obvious that there is one leak point that consistently cost contractors in lost revenue; equipment. If your light-tower or excavator was not billed on your T&M contract, you will not get an email or a panicked late night text message from the equipment. For that reason, all too often, un-billed equipment never gets corrected and owners get a free lunch. When you start adding up the cost of heavy equipment, well… it adds up very quick.
I’ve seen equipment trackers take the form of spreadsheets, white boards, sticky notes and dispatch tools all used to reduce the likelihood of missed equipment billing. All of these are helpful, none of these are bulletproof.
My recommendation is to spend a disproportionate amount of time reviewing your equipment billables. It’s worth the investment.
If you are looking for tools and strategy’s to de-risk this leak point or just want to talk about your experience, email or call me anytime.