As contractors take on bigger projects, bigger machines and tools are also necessary. To maximise investment and seek better opportunities, contractors can maintain financial flexibility by renting equipment and heavy machinery. Most equipment used in construction today is rented. Some of the most commonly leased items are cranes, drills, mixers, pavers, and tractors.
Big contractors do sometimes purchase and maintain their fleet of heavy machinery. For some, it makes sense to consider this investment, but for others, renting has become a more convenient option. Whether renting makes more financial sense depends on the needs of the contractor. Yes, there are specific cases, such as when you need to use a crane, in which renting from companies like Crane Hire Lincoln is a wise choice. But how do you make sure that you get the most value out of renting equipment?
The amount of time you need to use a piece of machinery
There are pieces of equipment that contractors use all the time. For example, you can have your own trucks and loaders but rent heavy machinery that you will only use for a short time. To calculate if buying is more cost-effective than renting, you need to consider the utilisation percentage. A piece of machinery that is 100% utilised is one that will be used for at least 176 hours every month.
Any piece of machinery or equipment that only has 40% or less utilisation is better off rented instead. In instances when the percentage goes up to 60%, buying the equipment depends on the size of your operation as well as whether you can afford the additional maintenance and storage cost.
Cost of downtime repairs
Renting makes more financial sense for smaller companies because the risk of unexpected repairs and liability for equipment operators is left to the rental firm. You can get the most value out of an equipment rental agreement by making sure that the firm covers insurance and also includes the cost of repairs, if necessary. By not worrying about these potential issues, you can focus on the more essential aspects of running your business.
Environmental compliance requirements
Construction equipment has to undergo testing to determine environmental compliance. Renting from a reputable firm means you depend on them to ensure that their equipment is up to code. To avoid encountering any concerns and delays, make sure that each piece of machinery rented has up-to-date compliance certificates.
Access to the latest makes and models of equipment
It is possible that rental companies charge more when the equipment is new, but the advantage is that the equipment is less likely to break down or require any repairs. It will be more cost-effective to rent machines that are new or at least well-maintained.
Availability of trained operators
Some contractors hire equipment and provide their own operators. But the risk here is that if anything happens to the operator, you will be liable as well. For a small contractor, it is better to include trained operators as part of the rental agreement. The rental company typically insures their employees which is one less thing to worry about for the renter.
