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Schedule of Average Annual Equipment Ownership Expense

If a force account work effort was started and completed prior to May 15, 2007, or if the force account work effort started prior to May 15, 2007 and continued on after that date, the 2004 Schedule of Average Annual Equipment Ownership Expense shall be used in computing the equipment rates. If the force account work effort started on or after May 15, the Equipment Watch Rental Rate Blue Book (available for IDOT employees via the Intranet - "Inside IDOT" site, under Applications) shall be used. Refer to Construction Memorandum 07-09 for details.

The Schedule of Average Annual Equipment Ownership Expense (SOAAEOE) is designed for use on force account bills of contractors performing work for IDOT and local government agencies who choose to adopt these rates. This schedule is also to be used in determining appropriate rates utilized by IDOT and other state agencies with various local government agencies.

Local highway agencies may use rates from the SOAAEOE for force account work on locally let projects, for equipment rental on motor fuel tax fund day labor work, for federal disaster reimbursements, or for intergovernmental agreements. The Bureau of Local Roads and Streets is applying an index to the SOAAEOE in order to account for the significant increase in equipment ownership costs. The index is based on the U.S. Department of Labor's Bureau of Labor Statistics Producer Price index for Construction Machinery Manufacturing. Local agencies should calculate the rental rate according to the schedule in the SOAAEOE and then multiple by the index factor.

Printing Tip: If you are experiencing trouble printing on-line, download this file to your local hard drive, then print from your local copy. Click the right mouse button on the link and choose "save target as" and download to any folder on your hard drive.