The calculation method for Facilities Services Shops FY2008 charge rate has been changed. The change is described and the new rates displayed below.

The FY2008 rates incorporate: a) salary increases in the trades (as negotiated in the new contract effective July 1, 2007), and b) calculation methodology adjustments. Most of the resulting hourly charge rates are substantially lower, while the overall effect on user costs is essentially unchanged.

The new rates become effective July 1, 2007, however, the charges for estimating and consumables will not be implemented until September 1, 2007 to allow Facilities Services customers to plan and budget accordingly.

Changes in charge methodology for FY2008

Prior to FY2008, the cost of consumable materials and time spent preparing estimates was included in the overhead costs used to set the hourly charge rates for work performed by Facilities Services Shops (Alterations, Maintenance, Campus Operations).

Beginning in FY2008, the cost of consumables and estimating time and consumables will not be included in the hourly charge rates. Instead, actual time spent preparing estimates will be posted directly to the work request and will be billed at the hourly rate. For consumable materials, a surcharge will be applied to every work request based on the total labor hour cost on the work request. Details of these changes are described below.

Estimating Charges

Estimating costs incurred will be posted directly to the work request even if the requested project is not pursued beyond the estimating stage. Estimating costs charged will match actual time devoted to the estimating activity. Charging directly for estimating more fairly bills clients who use the service as opposed to spreading those charges across the entire client base.

Time devoted to reviewing estimates with clients will be treated as overhead planning time (covered in the planning portion of overhead).

Consumables Surcharge

A surcharge covering the cost of consumable materials will be applied to all billable work requests.

The surcharge will be a percentage based on the total value of the labor entered against the work request. A single surcharge percentage is calculated for Maintenance, Campus Operations, and Grounds. A different surcharge percentage will be calculated for Alterations and will be applied to any work request phase containing an Alterations shop. The surcharge will be reviewed and adjusted annually.

FY2008 Charge Rates

Maintenance, Campus Operations, and Grounds FY2008 rates are as follow:

Alterations FY2008 rates are as follows: