“Construction Equipment” shall be defined as tools, accessories and Construction Equipment that are not small tools and consumables or Major Equipment and are used in the performance of any work.

“Operated Rates” shall be defined as an Construction Equipment rate that includes the cost of operation for any piece of Construction Equipment plus indirect costs, except the direct personnel who will operate the Construction Equipment (which shall be reimbursed as an hourly rate pursuant to the terms of this Contract). Operated Rates shall include all direct and indirect costs associated with the Construction Equipment including, but not limited to, depreciation, taxes, maintenance, spare parts, supplies, fuel, required (associated) consumables, and oil. Operated Rates apply only to those hours the Construction Equipment is actively engaged in the Work and incurring operating costs.

“Standby Rates” shall be defined as an Construction Equipment rate that does not include the cost of operation for any piece of Construction Equipment. Standby Rates shall include all ownership and indirect costs associated with the Construction Equipment, including, but not limited to, insurance, depreciation, taxes, and storage. Standby Rates shall be billed for Construction Equipment considered necessary to the performance of the Work but not actively engaged in the Work for the time billed. Thus, hours not billed at Operated Rates within a reasonable work day shall be billed as Standby Rates for such Construction Equipment.

NOTE: Some Construction Equipment listed herein may be determined by Owner to have only one rate. In such event, Owner will note a cost of zero dollars in the Operated Rate column, and the agreed upon rate will be noted in the Standby Rate column. Contractor will therefore be required to bill such Construction Equipment at the rate stated Standby Rate column for that Construction Equipment.