Construction industry contributes a lot to the growth and development of a country through infrastructure. Over the years, there has been an increase in the number of companies going into the industry because of the growing demand. The industry has been subject to various changes that have led to cost effectiveness and time saving. Development of technology has contributed to the modification thus influencing the equipment used in the industry. Most of the contractors have resulted to updating their systems to keep up with the changing trends.
Construction equipment is essential in the operations of the industry. Therefore, it is important to make sure that you have the right equipment for the selected job. Engineers, contractors and architects invest their time and money in selecting and obtaining the proper equipment for a particular job. How do you obtain the construction equipment? What are the factors that may influence the selection of equipment?
You can obtain construction equipment either through purchasing or hiring.
Purchasing Construction Equipment
Most of the construction equipment are expensive. Therefore, it is more convenient for a big company to buy the equipment compared to small firms. This is because it will have enough cash flow to cater for the significant amount of down payments and additional costs such as license acquisition, insurance, taxes, storage yard cost and maintenance.
PROS
- It is cost efficient when performing recurring and long-term jobs.
Most of the costs of acquiring the material will be incurred one time.
- It works best for contractors working on unique projects such as the construction of structures with greater heights exceeding the standard aerial lift that would require specialized equipment. You can pay the manufacturer to customize the equipment to perform unique tasks.
- Buying is a good choice when you are dealing with equipment that is not prone to technological or functional change.
CONS
- It can be expensive to acquire and maintain the equipment.
- Most the construction equipment are subject to depreciation and wearing out Therefore, if you are dealing with short- term projects it is not advisable.
- There has been a rapid increase in the prices of construction equipment. This has led to growth in the annual rates. Therefore, it is advisable to acquire the equipment early or opt for rentals.
- The equipment is prone to technological change. Therefore, contractors and engineers have to update to the current trends.
Renting Construction Equipment
There has been a growth in the rental of construction equipment. Most people and firms find it cheaper compared to buying.
PROS
- It is efficient when performing one-time or short-term jobs.
- It is cheaper compared to buying construction equipment since you will not incur the additional costs. You will only be subject to the rental rate, selected rental protection plan and energy costs.
- It is a straightforward process compared to buying since contractors will only need to determine the required equipment and contact the leasing firm.
- Using the current trends in the rental rates, you can predict when is the best time to enter into rental agreements.
CONS
- The volatile nature of rental rates- they change based on the availability of inventory and demand.
Factors Influencing the Selection of Construction Equipment
- The type of equipment required will influence the decision made by the contractor.
- Availability of spare parts for the equipment; make sure that spare parts are readily available.
- The cost of owning, maintain and operating the equipment.
- The intended economic life of the equipment so that you can select the lowest. cost to acquire it. Consider depreciation, replacement, obsolescence and repair when determining the economic life.
- The available sources of the construction equipment.
Written by Lindsey Rentals. Lindsey Rentals offers the best equipment rentals in Columbia, MO.