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Principal Questions to Be Asked When Financing Your Heavy Equipment

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Established contractors prefer to finance their bulky apparatus instead of procuring it with a huge amount of money. This financing technique brings the benefits of cash flow in their trades. If the contractors want their procured equipment to be disbursed for itself as it is being employed, then the process of financing can be a development engine for their businesses. When the suppliers desire to differentiate the asset purchase with the appointing of an employee, they crave for both so as to produce their keep at the end of the day. An excellent analogy assists the employers to get the salary of the entire year on first day.

If you take the direction of financing, it is necessary to know that all the apparatus finance contracts are applicable for agreeable tariff treatment according to the benefit of Section 179 hastened depreciation. In most of the cases, the contractors can deflate the total amount of the paraphernalia in a year as opposed to lettering it off over a five year term period. The sum of write off differs from time to time. Most of the weighty apparatus companies have more than one financial organisation to vend their equipments in profitable price. Here in the article, you will get to know the most important questions that usually determine the performance of your selected finance firm.

Is the funding company a key lender?

Many kinds of money mongers are available on the souk so it is important for you to know which type of lender is suitable for your business. Usually, brokers collect money from other loan companies to run their process of business deal. Their interest rates are higher and the contracts are unsecured. The publicly-traded and bank-possessed investment organisations are mostly preferred by the construction industry.

Current Rate in the Financial Heavy Equipment Market

Generally, every moneylender in the construction paraphernalia offers fairly same rates. Be cautious of the shortest rates because the money mongers may take other charges and fees to cover up this gap. It is essential for the contractors to find out those organisations that maintain a valuable relationship with their end clients.

To enquire about the disbursement options

It is good process to verify the authenticity of the financing concerns. The reputed funding organisations proffer flexible payment alternatives for instance 12, 24, 36, 48 or 60 months. It is sensible for the contractors to choose the long term so as to decrease the amount of monthly imbursement.

Is the financing organization proffers tax benefits?

The construction business contractors should examine that whether their desired funding organisations offer any tariff benefits or not. Most of the finance deals are based on balance sheets and depreciation. It is advisable to the suppliers to discuss the matter with the tax consultants so as to select the best financial company.

Financing is an extremely effectual method of attaining new heavy equipment while controlling the monetary budget and capital flow. Knowing, with which financial company you are working, enquiring the important queries and reassessing your contract will assist you to avert unpleasant bombshells in future.

No point in buying new equipment when one can get it on rent

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Construction industry falls in that category of industries that has huge requirement of finances for some reason or the other. They need money to take care of the operating and non-operating expenses, pay the workers their wages etc. They also have to check on the kind of heavy equipment available with them so that in case there is a need to get a new machine they should have the funds to go and get it. Heavy equipment are quite an expensive stuff and one got to be ready in advance and keep the funds available to ensure that the need of the business is fulfilled. Having said this, there is one point that the owner of a construction company can ponder. In case, if they can get the same machine that they are looking for on rent rather than having to buy them, it may save a lot of money of the company and simultaneously they can make use of the funds that were parked to buy the machines to take care of some other business needs.

There is however one very important point that you should keep into consideration before you rent a machine. Since you would be using somebody else’s equipment, you should ensure that the machine has all the features that you would be requiring for the project and the machine is in good shape. You should probably take an expert with you who will examine the machine before go ahead with the deal. You should not end up taking equipment for which you have to repent in the future.

Few other pointers that you should know before you sign on the dotted line.

A brief history of the machine:-

To know a few things about the machine will always be beneficial as it will help you to negotiate with the giver. For instance, if the machine has some cases of accidents then it puts you in a position from where you can demand for a deduction in the rentals. Negotiations like these are always open and the taker must be ready to take chances wherever and whenever it is applicable. Knowing the history of the machine will also give you the idea of how old the machine is and is it at par with the construction equipment that comes with the latest technology gadgets. This will help you to decide if you should be eventually going for the deal as it makes no point in renting something that is technologically backward.

Knowing the tentative duration of the project:-

You should at least be aware of how soon you can complete the project. On the basis of that, you would be renting the stuff. Always rent the machine for an additional 2 months from the tentative date of completion. You never know if things may get delayed and you have to prolong the use of the equipment. Often the giver rents the machine keeping into consideration that he may not need the machine for a specific time and if he rents it to you he may ask you to hand it over once the terms completes. So if the work is left incomplete and he asks you for the machine, you will be left in a murkier situation. To avoid this, you should rent it for 2 extra months and keep things in your control.

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Workers working in construction sites are prone to various air-borne diseases

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We say that the human race is developing but it seems that we are making things that will cause more harm to us than ever. We make things for our ease but in this process, we forget that there are certain repercussions that we have to face and without wanting to know those repercussions we do things that affect us the most. Our environment is so polluted that every other day we get to see people dying of lung disorder, heart failure, and asthma attacks and so on. If we talk about people working in construction companies, we will find that they belong to the worst affected lots and are infected with various air-borne ailments. They have to go through a lot of dust that is so prevalent in a construction zone. Fresh air is so seldom for them and they are simply left with no other option than to inhale the polluted air.

It is not only the dust that they inhale but also the smoke that comes out of heavy equipment. Most heavy equipment run on diesel and after a certain period of time they emit smoke and intoxicants in large quantity that becomes unhealthy for the people around. There is primarily one reason why machines emit black smoke. It is particularly due to lack of proper maintenance of the machine. The equipment work for months without much lubrication and the engine oil also is not changed at regular intervals. This leads to problem in the engine and if the health of the engine is not good, it is bound to emit intoxicants in the form of black smoke.

What construction companies/employers must do to safeguard the health of their workers has become a matter of discussion and many companies are incorporating the following measures to ensure that the lives of their workers is not taken for granted.

Proper maintenance of machines:-

Intoxicants in the air are one of the major reasons for the falling health of construction workers and machines emit intoxicants due to improper maintenance. To get this fixed, the only way is to ensure that the machines are maintained at regular intervals. It is quite obvious that the operator may forget to send the machine for maintenance. Hence, a calendar must be prepared where you jot down the date when you will take the machine for a wash and get it serviced.

Procure heavy equipment that are environment friendly:-

Many construction companies are in the process of acquiring green machines that will not emit or will emit less toxic in the air as compared to the ones being used currently. Though the equipment will be expensive but will last for more years and will also not pose a risk to the health of construction workers.

Set up camps to check the health of workers:-

Construction companies should take the initiative where they set up camps at least twice in a year and conduct a complete health check-up of its employees. They should not just restrain it to the laborers but also include staff and guys from other departments.

Hire, Purchase or Lease – Which One is better for Your Next Heavy Equipment Investment?

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Presently, construction industry is blooming but in a slow speed. In this situation, is it better for a construction company owner to lease, procure or rent a bulky paraphernalia? According to Peter D. Gregory, the senior vice president of the reputed construction group of Atlanta commented that right now the condition of the market is tentative that’s why the construction company owners are hesitating to procure heavy equipment or go for leasing deals. Yet, the construction concerns still require bulky paraphernalia to accomplish their task on the site.

In large organisation, the construction business possessors hire equipment managers and chief financial officers to give suggestion on the issue of renting, leasing or purchasing the heavy equipment. On the other hand, in the budding construction firms, the owners alone take the decision. The presidents of some of the well-renowned construction companies stated that the decision entirely counts on the financial condition of the organisations. To determine, which one is the most suitable one needs some logical prediction and forethought. Here in the following piece, the readers will come to know the difference between the buying, renting and leasing a heavy construction equipment.

Renting, Purchase and Leasing Options for Construction Site Contractors

Rent option helps the contractors to save their capital. Often, they choose the option of renting when they require a specific item for a particular task. Some of the well established construction merchants stated that renting is more costly than lease and purchase options because it provides flexibility to the clients.

When the contractors procure heavy construction apparatus, the dealers not only proffers instant ownership but also subtracts the depreciation cost of the equipment. The interest the possessors get form the deduction helps the construction firms to conserve their tax amount. Majority of the construction organisations prefer to buy heavy equipment parts as it adds as a valuable asset in the in the balance sheet. But, the majority of the budding construction owners prefer to go with the lease option because of the Alternative Minimum Tax (AMT).

Lease is yet another option that is facilitated to the construction company owners by the dealers. It is the best choice for those organisations which are not efficient enough to utilise the depreciation. Other than ownership, this option also provides usage pact with typical no money upfront quality.

Comparison Between Lease, Rent and Buy of Heavy Construction Equipment

For long term use, the charge of the lease is much lower than the renting cost. Therefore, it is sensible for the contractors to avail the benefits of leasing heavy equipment for long term basis. If the construction company owners desire to attain the equipment, then the outright purchase technique is more economical to other alternatives.

On the other hand, for short term purpose, the option of renting heavy construction apparatus is the best. If any construction concern owner wants to go with the buy option, he/she should asses some factors like time duration of the application of the equipment and its maintenance cost.

To sum up, it can be said that all the above mentioned options of availing the benefits of heavy equipment are beneficial to the construction owners unless and until they have the skill to attain it in proper way.

 

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Don’t Let Your Dreams Die Due To Scarcity Of Funds

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We all have dreams in our life to become rich, to pursue the career we always wanted to, and to live a lavish life having all its luxuries. Well these were just about the dreams we all have but in order to fulfill them we have to work real hard. At times, simply working hard is not sufficient to get what you want; you need to do a bit more than that. For instance, a person working in a particular sector now wants to start a business of his own in that sector. However, due to lack of funds, he is not able to. Though he knows that if he is given the opportunity and the money to kick start a business he intends to do, there is no looking back for him but just because he doesn’t have sufficient amount with him, he can’t take the leap forward.

There are many individuals who are capable of starting up a business of their own but just because of scarcity of funds; they stick to what they are doing rather than taking any risks in their lives. What is perhaps suitable for them is to approach a bank and check if they can give him a loan to meet his financial requirements as far as his business is concerned.

There are few things that are very important to do before you approach a bank for loan. We would be discussing them and understand their importance respectively.

How well do you know your work?:-  Before you start up a business of your own, it is important that you analyze how well you know this business. You should never see yourself in a situation where people are taking you on a royal ride and you can’t do much about it just because you don’t know much about the business. This kind of situation can be very harmful to you and therefore it is very important that you take some time to first learn your work and then think of setting up a business of your own.

Availability of businesses from clients:-  Availability of clients plays a significant role in shaping up your business. Your business entirely depends upon the sort of network you have and through that network, how many clients you can get for your business. You may have just started up your business and have no goodwill in the market. It is probably the network thing that can earn you few businesses for the mean time and then once you have established goodwill, you can cash it on by acquiring more clients.

Research on which bank offers loan at low rate of interest:-  Different financial institutions charges different rate of interest to their customers. It is prudent that you first understand the amount you want to borrow and then do some research on the banks which provide loans at lower rate of interest. You will definitely get hold of something that you never knew about.

Availing loans can secure your dreams. It’s just that you got to be a bit careful while you select the financial institution from whom you’d be borrowing the money.

Heavy Equipment summer maintenance

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After having a chilled winter season, summer is probably the best season one can get to cherish. It is ideally during this season that people plan out their vacations, go out to meet their dear ones living in some other state and enjoy their lives in the warm sunny weather. However, this very same summer season which is so pleasant to many of the folks can be real bad for guys belonging to the construction industry. They may have a hard time keeping their heavy equipment cool. Just because the machines are getting hotter, they can’t pull off from work. They have to continue with their businesses and still ensure that the machine does not get blown off due to excessive heat and do everything possible to keep it cool. Heavy equipment go through number of complications during this season and they suffer chronic breakdowns. We have seen numerous instances where the machines give up when the weather is pleasant, it can become worse when the weather is actually hot.

The workers working in the construction site also finds it difficult to work in a hot climatic condition. However, they still have the leverage to cool themselves by moving in an air-conditioned room but the same logic can’t be applied in case of heavy equipment. If the operator feels the machine has got too hot, he can only stop working so that he can give some time to the engine to cool down. Due to hot weather, it will take more time than usual to cool and the operator will be losing productive time. This will lead to unwanted delay in the completion of the project resulting in many unnecessary repercussions.

Taking the heat into consideration, heavy equipment manufacturing companies are producing machines that can bear the excessive heat and can work without having to wait to let the machine cool down. However, this kind of technology has not been completely successful. Machines possessing this technology also break down causing more trouble to the construction company.

Check your equipment at the end of the day:-

Once you are done for the day, make sure that you spend some time giving a good look to your equipment. If required do some cleaning. Cleaning the machine with water can really help in cooling down its system and also remove the dirt that sticks to the inner portions of the machine. You do not have to spend a lot of time for this activity. You can devote at least half an hour of your time or may be less than that in checking if everything is in order and in case if it needs any action to be taken, you can take a call yourself or contact the immediate supervisor and get the issue fixed.

Monthly maintenance is a must:-

Other than doing a daily check-up, a monthly maintenance is equally important. Get hold of an expert mechanic who can do a monthly check-up of your machines. Changing the engine oil, applying lubricants and other necessary stuffs needs to be done during this time. Give your machine a new life and it will work for many years to come.

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How Trolley Assisted Electric Truck Saved Fuel?

Trolley assisted electric truck have been used across the world especially at the mines of North America and Africa. The worldwide usage of trolley assisted electric truck proved that the electric driven trucks are more efficient in the long run than the old existing mechanical truck. In mining areas these trucks minimizes the fuel expense by 45% and increases the productivity by 10%.

The engine of a trolley assisted truck generally idles for about 750rpm. During that time the main pressure inside the machine is that of the electrical system’s cooling blower. This pressure is generally 15% of the total capacity of the engine. In diesel momentum, the engine will attain full power at the highest speed on a 10% effective grade. The BHP is 2025 in a 12V 4000 engine for about 1900rpm. A calculation of fuel consumption rate using the above data in diesel stands at 360 LPH whereas in case of truck assisted electric trolley it is as low as 45LPH.

Electricity is comparatively cheaper than diesel fuel which enables everyone to save money. Moreover, electric trucks also do not create pollutions which is a great problem with diesel fuel trucks. The power through overhead line is more potent than the on board power source of the truck. We all know that voltage is directly proportional to speed and this fact enables the operators to increase the voltage to the level of electric motor’s end point. This, in turn, raises the speed of the truck though it remains in contact with the overhead line. And the speed of the truck reaches 10kph on a twenty percent gradient. The final outcome of this procedure is the reduction in the amount of fuel consumed by the trolley truck which is as low as only about 25 litres per hour.

When trucks run on electricity, and it absolutely makes no use of diesel. It is a well-known fact that electricity or hydrogen are renewable sources of energy. These trucks have achieved the status of zero-emissions, as a result it reduces global warming protecting public health. Fuel cells, battery and hybrid powertrains which are greatly used nowadays saves fuel and hence play a great role in economic saving of the world.

Electric Drivetrain technology saves fuel

  • Hybrid electric vehicle: Hybrid electric trucks are the most mature form of electric drive technology. Hybrid electric trucks can travel more distances as compared to traditional mod of trucks. It improves fuel economy and extend brake life.
  • Battery electric vehicle: Battery electric vehicle trucks are run by an electric motor connected to onboard batteries. No combustion engine is present inside the truck and the batteries should be charged regularly by plugging.
  • Plug-in hybrid electric vehicle: These kinds of trucks gain its braking energy through the recharge of the batteries. They are very similar to Hybrid Electric Vehicles with a bigger battery pack.
  • Fuel Cell Electric Vehicle: These electric trucks gain their energy by refuelling it with hydrogen. It do not require to gain its energy from any external electric source.

 

Electrification of trucks has recently came into being, but it already gained a strong footing. This wiser use of electrification technology has become a key factor that doubles the fuel efficiency of the trucks and will cut down the nation’s estimated oil consumption by 40% in the upcoming years.

 

 

What is the ultimate medium dozer?

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Heavy equipment are of various types each type of heavy equipment is meant for a specific function. Though there are few equipment that are multi-purpose but they also come with certain constraints and keeping into consideration those constraints, an operator bring that machine to use. It depends upon the operators recommendations if the equipment should be used for a specific work because he would be in a better position to understand if the work is doable with the equipment. Similarly, heavy equipment can’t do all kind of work that it is meant to do.  For instance, you are given a project to repair the road which looks fragile. You know that you have to unearth the strip using an excavator and then roll a dozer to plain the road. In this situation, you can’t use the excavator that is used for big projects and also can’t use the big dozers. It becomes important for you to identify the kind of machine you need for the work. You perhaps need a medium dozer to complete the work in contrary to the higher version.

We would be talking about why we need a medium dozer and is it really going to be effective.

Not all work suitable for all machines:-

Not everybody is compatible for everything. This also goes good with heavy equipment. Construction companies that are engaged with mighty projects need big dozers. However, while doing those big projects, they come across situations where they require a medium range or small dozers because they may not find the bigger ones compatible for the small work. They may see the use of a medium dozer in that situation. Similarly, when a person needs to work in his garden or there’s some work in the school campus or in the university campus, a medium dozer is much preferred machine.

Very simple to use and bar the requirement of an operator:-

The medium dozers and quite simple to use and do not have complex buttons that you may see in a big dozer. It would be almost impossible for a layman to understand the various functions in a big dozer. He may ruin the work if at all he uses the complex machine. However, if the person decides to hire an operator, that will be an additional expense on his part. Firstly, it is not so easy to get a heavy equipment operator. They are people with expertise knowledge about the machine and are usually hired by big companies paying them fat packages. Nevertheless, if he still manages to get hold of one, he may not be able to afford him. In such a situation, the medium dozer comes very handy. He only need to follow few very simple instructions and can get his hands on the machine.

Quite economical in terms of fuel consumption and high productivity:-

The medium dozers are highly economical when it comes to fuel consumption and still manages to deliver high productivity. After a lot of research work, engineers of various heavy equipment manufacturing companies have come up with latest technology enabled medium dozers that saves good amount of money for the user. It can also give a good sales value after using it for some time.

Where should a Cat Diesel tech seek advice from?

In the construction and heavy equipment industry, it is very simple to get advices from people. However, you never know how far those advices are accurate and will work for you. So, before you start looking for any advices, it becomes quite instrumental that you find out the right set of people who can advise you on things. People who know about the subject you would be asking and if at all they do not know much about it, they will be frank and tell you to check it from someone else. There are many people who just for the sake of giving advices give you any wrong recommendations which turn out to be dangerous for you. There are people who have set up their office and consult others on various issues. Well, one can’t know anything and everything to consult others. Therefore, you should be aware of such thugs and go to the right place in case you need any consultation. Other than that, in today’s world where internet has brought all of us so close and has made the world a small village, it makes no sense to approach a person directly without checking things on net.

Create a forum and invite people to give advices:-

People love to give advices on things they know and at times even on things that they do not know much about. The best way to get some solid advices is to create a forum ad put up the question you want to know. You will see people flocking in to answer your question. As long as the question does not request others to give their business tactics, they will be more than willing to tell you know what you want to know. A forum will allow experts and intellectuals belonging to the construction and heavy equipment industry to come at a common place and speak on the topic in question. They can give you ample of options that you may have not even heard of. Having experts in your forum will always help you to develop your knowledge about the particular sphere an make you more competitive and a person who has an edge over others.

Simple search it on the net:-

At times you may just want some simple answers and may not require lot of opinions on a given subject as that might confuse you further. In such a situation, it is recommended that you simply search for it on the net. Internet can provide you distinctly what you are looking for and you may ignore the rest. As a matter of fact, it makes no point in getting confused with multiple options and we all expect a straight and simple answer to our questions.

Take advices from your colleagues and peers:-

When you are in trouble, you always depend on someone who is trustworthy. You can do the exact same thing here. If you are eagerly looking for something, you can depend on people with whom you have been working for years. They will be the right choice for you when you need them the most.

Save Your Life by Wearing Safety Vest at Construction Sites

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Safety vests are seen prominently at the construction sites worn by road flaggers, road workers and emergency personnel. They have to perform their job with heavy equipment in all conditions. The vests are designed to make the wearers more visible to others and hence keep the workers safe. According to the report of Occupational Safety And Health Administration, the reflective material of the safety vest should be sewn all over it to make the workers more visible both day and night. The vests are light-weighted, the loop and hook closure at the front side and the side strap of elastic aid to keep the wearers at ease in any situations.  It is made of fabric of bright neon colour containing a reflective tape that reflects the light of the car headlights.

The fire and emergency rescuers wear ANSI 207-2011 safety vest. These vests are generally known as public safety vests. The workers put them on over safety equipment which can be taken off quickly in the circumstance of complication.

Uses of safety vests

  • The reflective high-visibility safety vests are the first choice of the machine operators as it helps them to be detected and hence others can avoid colliding with them.
  • It also helps to maintain the traffic where it is at its minimal.
  • Putting on a safety vest while performing at huge-traffic areas help to reduce road accidents.
  • Its visibility also enables the wearer at the construction site to make out in foggy or dark conditions.
  • On big construction areas, where a worker is stranger to the other, the vests assist them to welcome a visitor.
  • In case any accident occurs on the site, safety vests make it easier for the emergency employees to locate the injured workers in an uneven landscape.
  • The padding of the vests protects the user from all types of injuries.
  • The vest also provides the worker with warmth making him comfortable in adverse weathers.
  • It is designed with two big sized pockets which are sewn on the interior side of the vest for cartable storage.

Which is better- Air Vest or Traditional Safety Vest?

There is an ongoing discussion about which is better- Air Vest or Safety Vest. At present, both of the brands have an accessible synthesized vest consists of the characteristic of both the safety vest and the air vest. However, modern air vests are designed in such a way that most of the workers working at a construction site prefer to use air vest to traditional safety vests. Development of safety vest set out in some accidental situations is underway, but these kinds of vests are not available commercially.

Maintaining a high-visibility vest is of first concern for different construction employees and this necessary safety equipment provides the employers the chance to assist their colleagues to stay secured and more visible at the job site.

Therefore, in conclusion we can say that safety vests are major safety equipment in a construction company. So, the workers should not forget to put on the vest before going out to work.

 

 

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