Reasons To Opt For Rental Equipment For Construction Projects
If you get a chance to see the balance sheet of any construction company you will be surprised to see the fixed assets and equipment that are showing in their inventory. Usually, these fixed assets are bought for a particular project and after the completion of that project, they are not in use. This seems to be a waste of financial resources and a lack of planning because those fixed assets are not only hitting with depreciation but incurring maintenance and storage costs. This is the reason that now the smart construction companies always run the visibility before buying any construction tools and equipment that are for a single project. Also, it is now easy to get all the required equipment on rent.
As of solution companies have to take up projects of different natures so it does not seem to be feasible that for every project, traffic control equipment they should be buying new tools and equipment whereas those can be rented for the life of the project. It is also an argument that getting the rental equipment will slow the progress of the construction company but if a company will run feasibility, they will understand that the rental option is better for the financial health of the company. Here are a few benefits that rental equipment may be helpful for a construction company to be efficient and profitable.
- Variety: A construction company is currently working on a project that is a shopping mall or a residential building. But now they are bidding for a new project that is road construction. If they have already invested in their recent project of the building where they have bought the equipment it means they will be short of the funds to buy new equipment for the road project. The road projects will be needed traffic control equipment or acrow props that will be easily acquired on rent. This provides a variety of equipment at the disposal of the construction company when they opt for a rental option.
- Quick construction: If a construction company have taken up a new project and they are going with the rental option it will significantly save their time to kick off the project early. They won’t be requiring any major financial resources to buy fixed assets like traffic control equipment or acrow props etc. Getting this equipment or tools on rent is not only the most economical but efficient way of kicking off the new project.
Less burden: For any construction prop hire in Sydney the major burden in their financial statement is always the fixed assets that are not in use. But if they will be making a smart decision of renting the tools and equipment for short-term projects then it will reduce the burden on their financial statements.