Tarpaulin - Florens Container Services

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Guidelines
Florens Container
Services
Web Publication
September 2006
Replacement cost allocation: When it is more economical to replace the tarpaulin
than to repair, depots must replace tarpaulin.
Florens does not advocate lease period or age as factors to allocate repair costs between
damage and normal wear and tear. Allocation for tarpaulin replacement that has damage
and normal wear and tear above the economic value of the repair must comply with the
following steps. The cost should include labor + material.
1) Calculate total cost of repair (damage plus normal wear and tear. Include labor and material),
for example, the total cost = $1000.
2) Calculate the percentage of damage cost. For example, the damage cost = $900, or
900/1000 = 90%
3) Calculate the percentage of NWT cost.
For example, the NWT cost = $100, or 100/1000 = 10%
Apply each individual percentage to allocate the replacement cost of the tarpaulin.
For the above example, to replace a 40' tarpaulin at $400, the lessee allocation
should be $360, and NWT allocation should be $40.
Tarpaulin replacement versus repair: When the repair cost of the tarpaulin is 90% of
the replacement cost, the tarpaulin should be replaced and not repaired. The additional cost
of replacement should be allocated as NWT to Florens' account. The additional cost should
be noted as a separate line item on the estimate.
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