One of the greatest challenges with large construction projects is the cost of acquiring heavy equipment. Depending on the project, the cost of construction equipment can be very expensive. In addition, only individuals who have the required skill and experience are qualified to operate these machines. For this reason, many companies decide to contract with rental equipment companies to rent or lease heavy equipment either with or without an operator.
In order to complete a construction project, there needs to be various types of equipment put into use, as well as qualified operators. Cranes, rollers, industrial loaders, excavators, track hoes, boom lifts, and back hoes are just some of the special heavy equipment often used on a work site. Buying all this equipment can be very costly, especially for small to medium sized construction companies. For this and several other reasons, these companies often opt to use rental equipment, rather than buying the equipment outright.
One of the potential advantages to renting is that it eliminates the cost of breakdowns. A reputable construction equipment rental company will provide customers with the most reliable equipment that is serviced by trained mechanics prior to each rental. When companies buy their own set of construction equipment, they have to shoulder these servicing expenses as well. Renting does not have any maintenance costs. All repairs and maintenance expenses are covered by a construction equipment rental company. Renters are not required to pay for these damages and this should be clearly defined in the rental agreement.
Companies that have their own set of construction equipment know just how expensive it can be to maintain all of it. They need to hire an expert mechanic to keep this equipment running and rust free. They need to have a large stock of oil and gasoline at all times. In case of repairs, they need to acquire a special set of tools and have a mechanic on site that is qualified to use them. In addition, they need to buy spare parts such as tires, hydraulics, and screws ahead of time. It is always wise to buy these spare parts when they buy the heavy equipment, because there is a chance that the spare part will no longer be available if/when the equipment breaks down in the future.
Rental equipment doesn't have storage costs. The responsibility of storing rented equipment lies on the rental company. For this, they manage special types of facilities where they store their inventory. Often, they also deliver the equipment to and from the construction site of the renter.
Renting also requires no capital investment. This sets a company's business capital free. They only incur expenses whenever they need the equipment. The money that they save can then be diverted to other areas of their business. In addition to freeing up capital, renting can increase a company's borrowing power. Rented equipment is not considered part of a company's liability. In fact, depending on the type of accounting methods being used, it can even positively increase the company's ratio of assets to liability.
Renting gives companies access to the most advanced equipment. Heavy equipment, just like any machinery, can become outdated within a fairly short period of time. When companies choose to buy equipment, they can only replace it when it breaks down or when they already have enough money to purchase more advanced equipment.
Renting gives companies the chance to test the equipment before choosing to buy it. This gives them the assurance that they are utilizing the right type of equipment for the job. And in case they are not really sure whether it is worth buying, trying it first can help them make the right decision.
Companies who realize that renting can save them a lot of money, time, and labor should bear in mind to rent only the best quality tools at the most reasonable prices. Since most of the heavy rental equipment companies have their own websites, renters can visit them to compare their various equipment and the varying rental fees that they offer. It is best for construction companies to opt for experienced and reputable heavy equipment construction companies to ensure that they are getting the best services. In addition to gathering information online, renters can also ask for referrals from other companies that have experience renting equipment for their construction projects.
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