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rates for subcontractinh with a timbco

Started by timberjack97, May 27, 2012, 01:46:25 PM

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timberjack97

a company wants to pay me 325 a tractor trailer load for cuting their timber and skidding it to the landing and  cuting  them up in to logs and load their trucks  the timber would be cut with my timbco  and i get all the pulp wood for free as part of the deal   what do you guys think of that?

MDLogging


timberjack97

25  tons    and ther is  80 loads of paper wood on the job and  300 000   board feet of saw logs on the tract

Holmes

It could be profitable to chip the remaining wood. After subtracting the pulp wood you could end up with 10,000 tons of chips, if you sell the chips for $25 a ton. Not a bad idea. Of course half of that number would be chipping and delivery charges.
Think like a farmer.

lumberjack48

That would be about $65. a MBF

What is pulpwood stumpage worth ?

Will they buy all the pulp ?
Third generation logger, owner operator, 30 yrs felling experience with pole skidder. I got my neck broke back in 89, left me a quad. The wife kept the job going up to 96.

timberjack97

i can   get    35  a ton deliverd to the paper wood mill  do you guys think its a good over what they want to pay me for that job?

lumberjack48

Thats about $84 a cord, you have about 800 cds

The last Co. work i did, i got $44. MBF on landing, $16. for 100" pulpwood on landing or $10. for TL.
Third generation logger, owner operator, 30 yrs felling experience with pole skidder. I got my neck broke back in 89, left me a quad. The wife kept the job going up to 96.

snowstorm

Quote from: Holmes on May 27, 2012, 06:21:49 PM
It could be profitable to chip the remaining wood. After subtracting the pulp wood you could end up with 10,000 tons of chips, if you sell the chips for $25 a ton. Not a bad idea. Of course half of that number would be chipping and delivery charges.
i know several that went into the chip biz those that stayed say you must sort every bit of round wood you can to stay afloat. i have been asked to do it...no thanks dont want a thing to do with chipping. the only good thing about it is you dont need very good wood to cut and the stumpage is cheap a buck or 2 a ton around here

lumberjack48

I could make good money hand cutting it with a pole skidder. I have no idea how logging with a Timbco works out on paper.
Third generation logger, owner operator, 30 yrs felling experience with pole skidder. I got my neck broke back in 89, left me a quad. The wife kept the job going up to 96.

barbender

CTL harvesters get $20-$30/cord just ro process here, that's a pile in the woods for the forwarder to pick up.
Too many irons in the fire

timberjack97

do  you guys think i should do the job with my timbco  for that?

log cutter

What is the haul on the chip wood?  How many saw log loads a day can you produce? The saw log price works out to $13 a ton for cutting,skidding,processing and loading. The money maker maybe the chip wood.
Timbco 475E

timberjack97

i have to haul the pulp wood  40 miles for 800  a load   my worker wants 100 a load to cut the wood runing my timbco  is that a good rate to payhim to?

log cutter

Boy you cost are a lot higher than ours. That load of chip wood here, the haul rate would be $10 per ton. Timbco operators $20-$25 per hour. Timbco with operator $120 per hour. Or $4-$5 per ton. Timbco's here mostly have hotsaws. Some jobs it cheaper to pay by the hour and others by the ton.
Timbco 475E

timberjack97

what would you recamend i pay him per load to cut  with my timbco  he wants 100 a load for the paper wood and 140 a load to cut saw timber  using my timbco  with a barsaw on it  is  that to much to pay him?

log cutter

What is the going rate for a Timbco operator in your area? To me his price seems a little high. I pay my operators $20 per hr for the first 8hrs and $30 for the next 2hr. for a total of 220.00 per day. plus fuel for them to get to work.
Timbco 475E

timberjack97

i dont  know  the going rate for a timbco operator in my area   he  tops to for that price  is that to much to pay him

log cutter

My short answer is yes. Here is why. 325-140=185. for your timbco plus skidder plus loader. How do you manufacture your logs at the landing? Hand buck them or through a processor or loader bucksaw? So for the rest of your operation you get $7.40 per ton . Here those are not good numbers.
Timbco 475E

timberjack97

i have  a husky brut  235 with a buck saw  what do you think is fair to pay him to run my timbco and to top the tress that he cuts with it?

log cutter

Well if you pay him this rate will you still make money?  Some guys you could pay double and they would be a bargain and others know matter how little you pay them ,they are still way to expensive .
Timbco 475E

timberjack97

i thought my profit would come from the money i get for the paper wood  he has a friend   that has a skidder and wants to skid for me what should i pay him  as  a fair rate?

log cutter

I have a question. Your a getting $35 per ton @25 tons per load = $875 per load. Hauling is 800 per load,So that leaves you 75 per load. your employee wants 100 per load. You are now out $ 25 per load. Sorry I just don't see how this will work.
Timbco 475E

timberjack97

no the hauling is  300  a load   

log cutter

Okay .you posted 800 per load. I was worried,hate for anyone to go backwards in this business. Makes the numbers look  better.
Timbco 475E

Jamie_C

Personally i wouldn't touch that with a 10' pole ... i can't see how there is any possible way to make money on this deal ... by the time you fell and process, skid to the landing, buck and sort the wood and then load it on a truck i expect you will be losing quite a bit of money ... they are dangling a carrot of "free" wood in front of you for the pulpwood, they want you to assume all the risk of the pulp markets ... what happens if the pulp market suddenly stops ??

I would come up with a rate to charge them for the logs including loading on the truck and another rate for the pulp including loading on the truck and if they don't like it tell them to find someone else ...

It's no good going behind just to stay busy

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