The biggest con of owning heavy construction equipment and machinery is that you have to bear the entire maintenance cost. Being a construction company, you have to take the plunge of diverse projects with unique requirements of equipments and gadgetry.
Without practicing an effective fleet management you can’t survive in an industry where competition is harsh and ever growing. However, you don’t have to purchase every bit of heavy equipment required. In such cases, renting heavy equipment is pretty advantageous especially in scenarios where you need some additional equipment or specialized machine for a specific project.
So, the fact of the matter is, that equipment rental is beneficial both for renters as well as contractors. It’s one way of making acquisition of construction equipment much more affordable and easy for contractors.
Yes it’s without a doubt that in construction the lowest cost or the lowest bid has a significant meaning. However, you can’t apply the same principle here in the construction machinery. You can just waste bunch of your time looking through the phone book and calling new dealers in search of lowest rental rates. This approach may work for short time business but when you’re in you have to plan for long-term benefits.
The best way to go at it is by acquiring a long-term rental services and try to make a good mutual relations with the dealers or renters. However, in such a way you’re not just getting benefit but you’re also passing the same profit margins to the renter by reducing the layoff losses.
The renters adjust the rental rates according to host of factors. Yes they consider the current market trend and the demand of the machinery but other factors also take part like how the contractor treats his machinery and how smooth the payments are credited.
Beside all such dictating factors, the length of rental term also has a significant impact. The cost of rent you’re getting for a longer term will be lesser than the rate you get for few weeks. So, the best way out is to plan your site activities such that the machinery can be used for one long term instead of short repeated terms. This will also ensure the availability of heavy equipment at site which will increase the pace of work.
Long term renting is also beneficial against buying the whole because the market is uncertain and you’re not sure if you’ll get the work down the road. So, if you’re a small contractor and you know your repute is enough to secure few projects in series try to hire excavator equipment on rent for longer term. Another benefit here for long term relationship is that things go south – your job get canceled or you face some hard times; the dealer will try to work with you in minimizing the costs in such situations.
So, if you’re looking to undertake construction projects where frequent need of earth moving machinery is there try to hire excavators on long-term rental relationship and get benefits as described above.