Suitable construction equipment is a prerequisite of undertaking any construction work. However, the cost of purchasing all necessary machinery is very high and if there is a lack of qualified operators to handle them, the risk posed to ground workers and passersby is increased manifold.
Training workers in the use of operating heavy machinery like backhoe loaders and earthmovers is time-consuming and cost-prohibitive for contractors. An alternative solution is to hire equipment and licensed operators which guarantees work that progresses quicker, efficiently and with fewer risks.
A rule of thumb in the construction industry is that unless you plan to use equipment at least 60 percent of the time, don’t bother purchasing any. Renting turns out to be much cheaper as equipment can cost an arm and a leg and leaving them unused more than half the time not only depreciates their value but subjects them to rust.
Before deciding to purchase or rent, it’s important to evaluate how often the equipment is likely to be used. If there are several projects in the offing and you know you’ll need the machinery, you can come to a decision quickly. If, however, there are only a couple and that too phased many months apart, renting will be much cheaper.
Rental houses and distributors leasing construction equipment try to keep only up-to-date machines in stock. They’re also well-versed in what type of equipment is currently in demand as they cater to many clients. As a customer, you have the opportunity to gain experience with new machines which will also allow you to make comparisons better as you calculate estimates.
Heavy machinery are capital expenses which means they’re subject to tax. The cost cannot be deducted within a year of purchase and as time passes, their monetary value depreciates while their functionality experiences similar depreciation. If you aren’t careful, you could end up with an expensive piece of equipment that’s used only for a time with a reduced resale value. What’s worse, if safety and quality control guidelines are amended during the life of the equipment, resale value will be plunged even lower by the time you decide to sell.
Another point to examine is transportation cost. If you’ve successfully bid on a project located miles away, transporting equipment and workers will be part of the logistics while fuel cost and loading and unloading time will also have to be considered. Not only can this be expensive but very time-consuming in which case, renting equipment makes more sense.
Fleet management is another problem. If there are multiple pieces of equipment you’ll require storage space which is not only expensive in the long run but not always easy to come by. Distributors and rental houses already have the necessary storage space so you don’t have to contend with the hassle. Besides, the bonus of not needing a license to rent heavy equipment is attractive to many.
As for whether approaching a rental house or a distributor is wiser, there are pros and cons to both which beg examination. With a rental house, you’ll find core construction equipment catering to a large geographical area. With a distributor, the list extends beyond core equipment and new releases are also leased. However, you may not find local distributors as they service a smaller area.