Construction projects require heavy equipment to prepare the site, level the ground, lift heavy materials, and remove waste. New equipment can build an impressive fleet, which is every contractor’s dream, but the upfront cost can affect the cash flow of the construction firm.
Besides the buying price, the equipment attracts additional maintenance, insurance, storage, and security costs.
Thankfully, construction companies can rent equipment for construction tasks and return it after use. This allows even small construction firms to handle many projects without equipment limitations. However, this is not the only advantage of renting over buying heavy construction equipment. This article explains how rental equipment improves flexibility in construction work.
Access to Adequate Equipment
Construction projects require different equipment at different phases. If a contractor has to buy equipment for every phase, they would probably run out of money, and the project would stall. However, the leading equipment rental companies provide various tools, accessories, and attachments that the contractors need for their construction work.
The contractor will only need to access the full catalog of equipment rentals and choose what they need for the next project phase. The contractor can hire more or less equipment depending on the size of the project and the deadline. However, it is impossible to scale if the contractor has to buy the equipment, which affects project timelines.
Low Initial and Running Costs
Heavy construction equipment is expensive, and many contractors need to obtain a loan to buy it. The interest from the loan, in addition to the insurance, maintenance, repairs, and storage costs, can reduce the bottom line. If the contractor does not get enough projects to offset the costs, they might fall into debt, which affects their morale and productivity.
Equipment rental allows the contractor to complete projects without incurring huge initial or recurring costs. The rental fees are usually lower than the potential interest from equipment loans, which helps contractors maintain a healthy cash flow. Besides, some rental providers cover some costs such as insurance, storage, maintenance, and transportation costs.
Access to the Best Technology
Equipment rental companies focus on providing the best equipment to their clients. They invest in the latest equipment and technologies to stay in business and gain a competitive edge. This means contractors can access the latest version of equipment for every project they undertake.
If the contractor had to buy the equipment, they would settle for the older and cheaper models, which may not meet the industry’s best practices. Since technology keeps changing, contractors who opt to buy equipment would enter a cycle of buying and selling to access the latest technology.
Take More Projects
A small construction company can only afford a few construction tools and equipment. When they have a running project, they cannot find more opportunities because of the equipment limitations. This means turning loyal clients away or allowing competitors to do the project. However, renting equipment enables contractors to find opportunities and satisfy clients by running various projects simultaneously.
The contractor can make more money, beat the competition, save money, and build a reputation for satisfying clients. Access to relevant equipment reduces project delays and helps contractors meet client expectations.
Construction companies can save money and improve efficiency by renting construction equipment. They can also complete more projects quickly and meet their clients’ demands. However, contractors should partner with a reputable rental company providing quality equipment for different construction projects.