Large construction projects usually face a myriad of challenges in their execution. Among the mammoth challenges is the acquisition cost of heavy equipment. Depending on the magnitude of the project, the construction equipment can cost an arm and a leg. To add onto this, these machines require highly trained and experienced operators and the cost of their services is quite expensive. For these reasons, many contractors opt to enter into contractual agreements with rental companies to lease the equipment whether with an operator or without.
Various types of equipment as well as qualified operators need to be put to the site in order to have a construction project complete. Some of the special heavy machines that are often used on site include cranes, forklifts, excavators, industrial loaders and boom lifts. The cost of putting these machines on construction sites is quite expensive especially medium-sized and small enterprises.With cost taking a huge proportion of the construction budget, companies choose to use rental equipment to beat the cost of purchasing new ones outright.
Advantages of Using Rental Equipment
A rental company of good reputation will ensure reliability in the equipment it leases to its customers. This could be in terms of having the equipment serviced before each rental. The cost of servicing is solely borne by the rental company which saves the lessee the expense of servicing the equipment if it was the owner. The lessee is at no point expected to shoulder the cost of servicing the equipment and this should be well spelled out in the rental agreement.
Construction companies who own equipment face the unenviable expense of maintenance. This can be broken down into the cost of hiring expert mechanics to service the equipment, the need to keep large quantities of gasoline and oil, during repairs, they need to purchase special tools and have mechanics with the knowledge to use them. They also need to buy spare parts when buying the equipment so that in the event it breaks down in future and there are no longer spare parts available in the market, stoppages won’t be experienced.
Renting equipment needs no capital investment. This means the company doesn’t tie its capital and will only need to spend whenever they need the equipment. In addition, renting can boost a company’s borrowing power since the rented equipment is not a liability. This could improve the company’s acid-test and quick ratios based on accounting methods adopted.
Renting enables the company to access the most advanced equipment. Heavy machinery can rapidly become outdated within a short span of time. For this reason, renting enables a company to access the best equipment that will not face obsolescence over the period of construction.
There’s no storage cost in renting equipment. The rental company bears the cost of storing the equipment. They maintain special storage facilities for the inventory and also ferry the equipment to and from the construction site of the lessee.
Other benefits accrued from renting equipment include the chance to test the equipment before a consideration to buy it which gives the lessee the assurance that they have the right equipment for the job on the site. Renting also saves the company time, labor and money if they choose the best tools at reasonable prices. They can access the websites of the rental companies to make comparisons of the various equipment and their rental fees and generally be well informed when making decisions on the rental companies to source from.
Written by Lindsey Rentals. Lindsey Rentals offers the best equipment rentals in Columbia, MO.