Construction Equipment rental is when a cost is paid usually against a time period to have temporary custody and use of an equipment to achieve some predetermined construction project goal or milestone. Terms and conditions of use and return are usually agreed in advance as well as payment terms.
The owner of the equipment is referred to as the rentor and the person who pays for use of the equipment is called the renter.
In contemporary times other terms such as “cold” or “hot” rental now apply where “cold” refers to taking delivery of the equipment and operating it yourself taking some minor responsibilities such as routine inspection and maintenance (fuelling and other routine inspection and maintenance responsibilities) and “hot” rental refers to taking the equipment as well as its operating personnel who also contend with routine maintenance of the equipment to ensure its ready availability for use whenever so needed.
Cold rentals presuppose that the renter has competent personnel capable of operating the equipment. If a renter does not have the enterprise content to deal with the operations and minor maintenance of the equipment the renter may not enjoy the ready equipment availability and this could result in lost time and additional costs to the renter not to mention extra costs of repairs and or replacements if any damage comes to the equipment while in his custody and
use. This is the reason why hot rentals are typically better as the operating personnel are a part of the equipment owner’s team and takes care of operations and maintenance responsibilities freeing up other resources of the renter not to mention the fact that if for any reason the equipment is unavailable for his use during the time he has paid for, the equipment owner is under obligation to compensate the renter however so they agree.
Rentals have also evolved as indeed most things and today we have Solution Rentals where the equipment owner evaluates work required to be undertaken and makes a proposition and determination of equipment and time package required to achieve the works and then proceeds to deploy his men and equipment to undertake the works. Here the equipment owner takes more risks as he is required to carefully consider all aspects of the work in order to make a correct determination of equipment and time requirements otherwise he suffers a loss and the renter could insist on service defaults penalties. The advantage of the Solution Rentals is that the renter could adequately oversee his project aspects from a project manager’s point and be in better control of his project.
This is indeed the new direction of rentals and only the competent equipment owners are able to correctly interpret the renter’s requirement adequately to the benefits of both parties. The major benefit of any of the above rental service types are that it enables the renter limit his equipment related capital expenses and all its management costs to operational expenses. This makes for better cash flow management that invariably enable faster project completion times or cycles. Other benefits include reduced risks perspectives, and operational stress of his organisation when the supply chain challenges are taken into consideration. When a renter does not have to contend with equipment repair and maintenance management issues, he is better able to focus deliberately on quality and safety and achieve better projects which bring more referrals and businesses on a continuous and sustainable basis.
In the developed climes the solution rentals is fast becoming the fad in the construction industry as statutory requirements are beginning to emphasis quality, safety and environmental agenda. In summary, the main benefit of renting is that it frees the renter of cost bearing responsibilities which sometimes depending on enterprise content adequacy could become cost sinking holes and divert attention of the practitioners from their core competencie which ultimately lead to poorly delivered projects.
Construction practitioners are better advised to consider the following before opting to buy instead of to rent;
1) Opportunities for continuous utility
2) Costs of equipment operations and personnel, maintenance, management (storage, mobilization and demobilization, security etc.)
In closing Construction practitioners are implored to consider their enlightened self-interest and embrace solution rentals as a deliberate growth strategy as in the end it is not so much the number of serviceable and unserviceable equipment held in yards that will confer advantages but the well finished projects delivered to pre-determined time, quality, cost and safety criteria which happen to be the minimum service guarantees that come with all our Equipment Investment solutions, a part of which is Solutions Rentals.
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