A common question among construction companies is whether to buy or rent their construction equipment. The answer to this question should be given very carefully since a whole lot of finance is tied up in it. If your company would take up projects consecutively, buying equipment would seem more suitable. If you take up projects further apart, then it would be wiser to rent equipment than buying with the consideration of the idle time spent by such bought machinery. So here are some of the advantages of renting.
1. No maintenance
When equipment is rented, the maintenance costs would be borne by the finest rental company. High inspection and quality testing has to be done regularly to make sure the machine works efficiently and this would take up a lot of time and labour if you were to do it, especially if it involves many equipment. So why take the hassle? Let it be handled by the rental company.
2. No storage
What most people forget about is thinking of a way of storing the equipment. The equipment will get damaged by just leaving it outside or by keeping it in a building which is not properly ventilated. Also, considering the costs of storage, you’d most likely choose to rent since it’s their problem to think of storage and not yours. They would set up a parking space at your site so that you could store your construction machinery in Singapore with no hassle.
3. Transportation is easy
If your work site is far away from your office premises, you’d need to transport you equipment to them. This would require you to hire a third party transporter simply for this task and it would cost you so much more than you expected. However, if you rent the equipment, they will deliver it wherever you need for actually a lower cost than other transporters.
4. Time and labour
Maintaining such massive heavy machinery is not easy. If you own them, you’d have to take care of them. So, you need to hire special people who know about management of such equipment. Some companies put up special divisions just to maintain them and account for them such as depreciation, maintenance costs etc. If you rented them, you will not need to waste your time on maintaining and rather use than labour productively elsewhere.
5. Rent before you own
If you are new to the construction industry, it would be wise for you to give your workers an opportunity to train themselves on rented equipment before they start handling equipment actually owned by you. These machines are high investments and mistakes made by workers could pay off badly. Hence let them be familiar with the process, try out different brands and models and give them a good training.