4 Factors Consideration of Renting or Buying Heavy Equipment

1024 683 amaliya halim

Heavy equipment is one of the most important parts of the contractor. Each project requires a machine that can help perform the effectiveness of each job. Proper planning to use the machine optimally is one indicator of the success of a project. However, for beginners or who are still pioneering the business, the decision to hire or buy assets (heavy equipment) must also be considered as well. This is very important because it will concern the profitability of the business.

Here are some factors to consider when buying or renting an asset :

  1. The financial condition of the contractor
    Before deciding to buy or rent a large tool contractor should ensure their finances. Experienced contractors and select many projects then they will prefer to buy. Conversely, if a new contractor joins and does not have a lot of projects it is better to rent heavy equipment. Capital to buy heavy equipment must be taken into account, in order to proceed to the next project. Do not get to choose to buy a company in financial difficulties.
  2. Duration of project work
    Beside from assessing the financial side, things to note also are how long the project will be done. Buy or lease heavy equipment can be considered by looking at the continuity of the next project. Contractors with long and sustainable projects will tend to choose to purchase heavy equipment. This is due to the ease of access in the procurement of tools. If the use of the tool is only used only a few times the option to rent is more advisable. In order to avoid unused or abandoned equipment and will harm the company.

  3. Freedom of tools and time of use
    Delivery of heavy equipment will provide a separate benefit to the contractor. Existing tools can be used anytime and anywhere. Changes that occur are not surprising on the project under study or variations of orders. By using the tool itself, the contractor who performs the weight measurements should count from the tenant pool. Not until now, we need tools, not available. Of course, it will greatly benefit the sustainability of the project.

  4. Management Heavy Equipment
    Heavy equipment already purchased by the contractor, in general, requires a storage area so that the tool is not easily damaged. Another case when the contractor hires cutlery when the tool is no longer used can be returned to the pool of tenants.

Through the above considerations return again how the conditions and needs of the company. Whether renting will be more cost-effective or buy for the sake of flexibility of use. What should be considered in hiring decisions is to study the contents of the contract carefully, study the rights and obligations between the owner and the tenant. Avoid contract cancellation unilaterally in the middle of the agreement, as there will be some compensation as well as a decrease in the credibility of the company later on. Consider carefully before deciding to rent and buy.

Sources:

  • Rostiyanti, 2008, Sumber Alat Berat
  • zahairaaccounting
  • unsplash.com