Owning a construction company or being a builder can be time consuming. There a lot of things that you have to take care of. You have to plan, procure what is needed and execute the job. This can be dilemma but there are different things to make the job easier to execute the plan more efficiently. One of the most commonly used equipment in the construction industry is the excavator. However, business sometimes dries up and that expensive plant equipment can sit idly, unused while you still have to keep up with payments to the bank. The question of whether you should buy or rent equipment is a reasonable dilemma for a lot of contractors.
The excavator is a versatile piece of equipment that is used to do more than just dig but it can be used to demolish structures, site grading or to move heavy objects. It is a common piece machine employed in material handling not just for the construction industry but the mining industry, forestry, agriculture and other industries.
When you have to make a decision between hiring or buying equipment it helps to take a step back and analyse what the cost-benefit will be for your company. Here are some steps you might want to take:
- Analyze the cost of a new excavator vs. the cost of renting the excavator over the period that the equipment is needed.
- Calculate the transportation and storage costs
- Consider how often you will be needing or using the machine
- The projected life span of a new excavator
- The cost of maintenance and service as well as the internal capacity to test and maintain your machine
- The labor cost for both options
- Rough amount of labor saved with either option
- The financing options available to you and your own financial situation
- Decide whether it’s better to buy or rent an excavator
Conducting an analysis of the cost-benefit will help you have a stronger sense of which option will be the best for you. Generally speaking, if you are going to use the excavator 40-70percent of the time it will take to complete the project, and you don’t have a steady stream of construction jobs then rental might be the best option for you.
Construction project are unique. They come in a variety of sizes and construction companies are required to produce a specific and customized result. This uniqueness extends to the kind of equipment that you will employ. It means you may need different types of construction equipment and different sizes. Civil projects require different sized equipment, small excavators for landscaping and larger ones for building. As a contractor, you want an excavator that can do more than one job and the good news about these is that you can get attachments that will help you do more than just dig. The bulk of construction work does not revolve around excavating. You are most likely to use the excavator at the beginning of a project and at the end. You may need other equipment between then.
As a contractor, your expertise may lie in the planning and the actual execution of the building project. You may not have the necessary skills to operate an excavator. When you hire an excavator, you can find a contractor with qualified operators to run the machine. Besides knowing how to operate the machine, you also need someone who knows how to ensure the machine works probably. When you hire plant equipment like excavator, the rental company will likely take care of the maintenance and handle any breakdowns. In the meantime, when that excavator is down, they will supply you with a replacement so your project doesn’t stall.
Excavators are generally big pieces of equipment; you need space to store the machine. You have to think about storage. You need to keep in mind that when you buy an excavator, you are anticipating that you will consistently be working on the same scale project or you will need the same sized excavator. You can avoid storage fees and not having to have a technician keep the machine in working order even if it’s just sitting idly.