Plant and pricing
Plant hire and fuel cost
- where
- fuel used (l)
- engine running hours (h)
- fuel use (l/h)
- plant cost before VAT (£)
- hire days
- hire rate (£/day)
- delivery and collection (£)
- fuel price (£/l)
- plant cost including VAT (£)
- VAT rate (%)
Explain this equation
This totals the cost of hiring plant for a job, including transport and fuel, so it can be priced into the quote.
h is engine running hours and c fuel use per hour, giving Fu litres. d and r are hire days and day rate, Ct is delivery and collection, p is the fuel price and N the cost before VAT. v is the VAT rate and T the total including VAT.
Cost is hire time times rate, plus fixed transport, plus fuel used times its price. VAT is added as a percentage at the end.
Sense check: five days at £120 with £90 transport and 75 litres of diesel at £1.20 comes to £780 before VAT.
Watch out: fuel and transport can be as large as the hire on a short job.
Total cost of hiring a digger, dumper or other plant for a job, including transport and fuel.
Enter your values to see the result.
Good to know
Fuel use per hour depends on the machine size and how hard it works: take it from the hire company or manufacturer and check against your own fill-ups. Engine hours are usually less than hours on site. Since 1 April 2022 construction plant must run on full-duty (white) diesel, not red diesel (HMRC). Add damage waiver, cleaning charges and breaker or bucket attachments if charged. Many hire firms charge weekly rates that work out cheaper than five day rates.
Common mistake
Pricing the hire but forgetting fuel and transport, which on a short hire can be as much as the hire itself.
Limits
Simple cost build-up; no operator wages (add as labour in the job price).
Sources
- HMRC, Reform of red diesel and other rebated fuels entitlement (construction lost the entitlement from 1 April 2022)
- GOV.UK, VAT rates (standard 20%, reduced 5%, zero 0%)
Results are calculations from the published methods and figures shown, and depend on the data you enter. Follow BS 8500, BS EN 206, BS EN 752, Building Regulations Part H, manufacturers’ data and your engineer’s design. Structural concrete and foundations need a competent designer.