Section R. 247.50 - EquipmentRule 50.
(1) If a bidder owns new, used or rebuilt construction equipment, the purchase price will be allowed in computing the bidder's equipment value and be credited as a fixed asset. For each year after purchase of the equipment, the annual depreciation charge will be deducted from the purchase price in computing book value.(2) At the written request of the bidder, the prequalification committee may consider the use of an appraised valuation but only when the appraisal is prepared and certified by an appraisal firm acceptable to the department. The appraisal shall be as of the close of the bidder's fiscal year and will be applicable for the prequalification rating period which applies for the application with which it was submitted. The appraised value may be used as the basis for equipment value for a second year only if a statement is submitted by the independent certified public accountant who completed the audit or review and if the statement indicates that the equipment inventory items are the same as the items in the appraised inventory for the previous year or explains in detail any changes to the inventory. A bidder may compute the current value of equipment for the purpose of prequalification using the straight line method of depreciation if the bidder submits a schedule of depreciation in detail and form as required by the department together with the prequalification application.(3) The value of the construction and transportation equipment for the purpose of computing the overall financial rating will be the book value of the equipment as shown under fixed assets less any long-term portion of notes or contracts payable on the equipment. If an appraisal is included with the prequalification application, the appraisal will be taken into consideration in the calculation of the equipment value by comparing the net book value to the appraised fair market value and the difference added to the net book value of the equipment. The value is then multiplied in accordance with R 247.41.Mich. Admin. Code R. 247.50
1979 AC; 2002 AACS; 2009 AACS