The cost of acquiring heavy construction equipment is one of the main challenges associated with projects within the construction industry. The cost of equipment can be very high depending on the nature of the project. In addition to this, it comes with the extra cost of hiring individuals who can operate this machinery. Due to these reasons, many construction companies are opting to work with rental equipment companies to lease or rent their heavy equipment. Leasing is available with or without an operator to operate the equipment.
For any construction project, various equipment and different operators are needed to see the project through to completion. This equipment ranges from cranes, rollers, excavators, boom lifts, industrial loaders and backhoes, among other specialized equipment. Buying all this equipment is expensive and could greatly inflate the budget for any construction project. Small and medium size construction are the ones who feel this the most and are, therefore, always on the lookout for cheaper ways of acquiring this equipment.
One of the potential benefits of using rental equipment is that it eliminates the cost of breakdowns. Reputable construction equipment rental companies provide customers with reliable and well serviced equipment that do not run the risk of breaking down resulting in stalling of the construction project as replacement is sought. Whenever construction companies buy their own equipment, they have to contend with the fact that the equipment will break down at one point or the other. They, therefore, have to shoulder the cost of servicing this equipment. Working with rental companies eliminates this cost. Rental companies are the ones tagged with the responsibility of covering repair and maintenance costs. If damage occurs to the equipment, the ones renting are also not required to pay for these damages, depending on the rental agreement.
It is very expensive to maintain heavy construction equipment because an expert mechanic has to be hired to keep the equipment up and running and free of rust. This calls for stocking large amounts of oil and gasoline at all times. if repairs are needed, there is the additional cost of purchasing spare parts to replace faulty parts of the equipment. Spare parts such as screws, tires and hydraulics should, therefore, always be close by. In the event that they are not, the company stands to lose a lot of money as the equipment will not be in use. Renting spares you these maintenance costs.
Additionally, renting does not require you to pump in a huge capital investment. This avails this capital for use in other aspects of the business. Additionally, renting not only frees up company capital, it also increases a company’s borrowing power because renting does not form part of a company’s liabilities. Depending on the accounting methods used, it could actually do the reverse and instead increase the ratio of assets to liabilities for the company.
Renting also gives a company access to the latest construction equipment. As with any other sector, heavy construction equipment also becomes obsolete with time. Advancement in technology has made this worse since new equipment of better quality is always coming up. Choosing not to buy such equipment is, therefore, saving companies from the danger of getting stuck with obsolete equipment in a fairly short period of time as a result of technological advancements within the industry.
Renting comes with the privilege of testing equipment before making the decision to purchase a particular type of equipment. As a result, a construction company gets to know what it is signing up for if it chooses to buy the equipment eventually. They can, therefore, use rental equipment to test whether a particular set of equipment is worth the investment it is calling for.
Companies that have realized the benefits that come with renting heavy construction equipment in terms of money, labor, and time opt to rent rather than buy construction equipment. Renting affords the best equipment within the industry at fairly affordable prices making this an ideal option of conducting business.
Written by Lindsey Rentals. Lindsey Rentals offers the best equipment rentals in Columbia, MO.