One of the biggest challenges with large construction projects is the cost of obtaining heavy equipment. Depending on the project, the cost of construction equipment can be very expensive. In addition, only individuals who have the necessary skills and experiences are eligible to operate these machines. For this reason, many companies decide to contract with company rental companies to rent or rent heavy equipment with or without operators.
To complete the construction project, there needs to be various types of equipment used, as well as eligible operators. Cranes, rollers, industrial loaders, excavators, track hoes, boom lifts, and back hoes are just a few special heavy equipment that are often used on work sites. Buying all this equipment can be very expensive, especially for small to medium-sized construction companies. For this and several other reasons, these companies often choose to use rental equipment, rather than buying equipment directly.
One potential advantage for renting is to eliminate the cost of damage. The leading construction equipment rental company will provide customers with the most reliable equipment served by trained mechanics before each rental. When companies buy their own construction equipment sets, they must bear this service expenditure too. Hire does not have maintenance costs. All repair and maintenance costs are borne by the construction equipment rental company. The tenant is not required to pay this damage and this must be clearly defined in the lease agreement.
Companies that have sets of their own construction equipment know how expensive it is to maintain it. They need to hire a mechanical expert to keep this equipment run and caric free. They need to have large stock oil and gasoline at any time. In terms of repairs, they need to acquire a set of special tools and have mechanics on the site that eligible to use it. In addition, they need to buy spare parts such as tires, hydraulics, and screws before. It is always wise to buy these spare parts when they buy heavy equipment, because it is possible that spare parts will no longer be available if / when equipment is damaged in the future.
Rental equipment does not have storage costs. The responsibility for storing rental equipment lies in the rental company. For this, they manage special types of facilities where they store their inventory. Often, they also send equipment to and from the tenant construction site.
Hire also does not require capital investment. This sets free company business capital. They only pay costs whenever they need equipment. The money they save can then be transferred to other areas of their business. In addition to freeing capital, hiring can increase the strength of the company’s loans. Rental equipment is not considered part of the company’s obligation. In fact, depending on the type of accounting method used, it can even be positively increasing the ratio of company assets to liabilities.
Renting gives companies access to the most sophisticated equipment. Heavy equipment, just like any machine, can be obsolete in a fairly short time. When companies choose to buy equipment, they can only replace them when it is damaged or when they already have enough money to buy more advanced equipment.
Hire gives the company the opportunity to test the equipment before choosing to buy it. This gives them a guarantee that they utilize the right type of equipment for the job. And if they are not really sure whether it needs to be bought, try it first can help them make the right decision.
Companies that realize that hiring can save a lot of money, time, and labor must remember to rent only the best quality tools at the most reasonable prices.