When it comes to toll management, construction fleets don’t fit the standard mold. Not only are vehicles moving through the tolling booths, but they are often carrying heavy equipment and have overweight permits. Add in the fact that you might be working with multi-state routes and an ever-changing fleet size, and it can feel challenging to keep up with toll management for construction fleets.
Generic toll management solutions struggle to keep up with the ever-changing demands of a construction fleet. If the fleet isn’t managed correctly, you might be dealing with higher costs and unavoidable complications.
Why Toll Management for Construction Fleets Is Different
There are several factors that make construction fleet toll compliance a bit different compared to other industries. For example, when your crews are carrying heavy equipment, it typically means that the tolling fees are classified on an axle basis…the standard commercial vehicle programs don’t account for these factors correctly.
Additionally, if you are handling a multi-state infrastructure project, then it means that your fleet might be crossing multiple toll points that are managed by many different authorities. Every place has its own classification system and billing formats, which can be complicated for tolling managers to keep up with everything.
Another factor that affects construction fleets is how project cycles require fleets to scale. As a fleet manager, you need to handle the transponder inventory and coverage management. It often feels like a moving target, and basic/static programs can’t keep up with the ever-changing fleet size.
The Biggest Challenges in Construction Fleet Toll Compliance
What are some of the most common issues that you are facing with construction fleet toll tracking and compliance? Our team has been in the industry for many years, supporting fleets of all sizes. These are some of the issues that we have seen and are helping our clients overcome:
- Vehicle Misclassification: This error is one of the biggest issues that will cut into your profit margins. Misclassifications are often due to factors that affect toll rates, including changes with axle counts, weight, and equipment type. If you have a high-mileage fleet, then these errors definitely add up over time.
- Permits vs. Toll Fees: You need to have the right overweight and oversize permits, but keep in mind that these permits only address legal road use…they don’t cover toll fees. Separate coordination is required for toll compliance for overweight construction vehicles.
- Different Invoices: When you are working with dozens of tolling authorities, it means that you are receiving different types of invoices. Reconciliation becomes a huge burden and can cut into your administrative resources as the team tries to keep up with the transactions and paperwork.
- Proper Billing: If you don’t have project-level tracking in place, then it means that the toll costs get absorbed into the general overhead. As a result, it’s difficult to see where the spending is actually going and how these decisions are impacting project profitability.
- Subcontractor Toll Activity: General contractors don’t have any visibility into subcontractor toll activity, which can result in compliance gaps and unexpected costs in the project accounting.
What Unmanaged Toll Actually Costs Construction Companies
Without proper toll management for construction fleets, the harsh reality is that mistakes will start to cut into your profit margins. When you have misclassifications and plate misreads that are slipping through, then your team is dealing with violations that start to stack up.
Not only do you have the high toll fees and additional expenses from violations, but also consider the amount you are spending on administrative hours to handle the violations and reconcile all of the different invoices that are coming through. These administrative hours aren’t often calculated in the project budget.
Finally, unresolved violations can eventually result in DOT and FMCSA compliance issues. Even if you pay the original fee, these mistakes can cause ongoing issues for your fleet.
How to Manage Toll Costs for Construction Fleets: Proven Solutions to Implement Now
Rest assured knowing that solutions are available to streamline your toll management systems and help you keep up with the ever-changing conditions in your fleet. You need a single platform that consolidates all of your construction fleet toll tracking. Eliminating the manual work and disjointed systems can help you keep up with all of the vehicles, states, and authorities that you are working with.
Once the platform is in place, make sure that you are using the right vehicle classification before the fleet hits the road. You need clear details about axle counts and vehicle types, and align the transponders and systems based on this information. This step will prevent most overcharges.
Finally, have a system in place to monitor and assess your fleet on an ongoing basis, ensuring that the vehicle classifications and transponders are always updated.
FAQs
How are construction vehicles classified for tolling purposes?
Most toll authorities calculate tolling fees based on the weight and axle count of each vehicle. This is why toll management for construction fleets can be complicated, because heavy construction equipment usually falls into the higher toll brackets.
How can construction companies allocate toll costs to specific job sites?
If you have a system for vehicle-level toll reporting and tie everything to the project codes, then it’s possible to assign costs to specific projects instead of grouping all of the toll expenses into general overhead.
Don’t Let Unmanaged Tolls Cut into Your Construction Project Margins
Our team at Innovative Toll Solutions offers the best toll management platform for construction companies, making it easier than ever to leverage technology and manage your fleet. We offer smarter tools to streamline your systems and improve overall results for your fleet management team.
Toll management for construction fleets doesn’t have to be complicated. Investing in the right tools and systems will make a huge difference so that you can keep up with the transactions and manage your budgets throughout the projects.
If you are interested in learning more, then we invite you to contact us today to find the solutions that will fit your fleet. Our team is always here to help.