Tag Archives: leasing heavy equipment

Decrease Expenses and make Profit by Leasing Excavators for Construction

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Excavators are heavy equipment used for constructing, mining, digging and moving huge unmovable objects. They are big in size and difficult to operate .On the construction site different kinds of equipments are required like scrapers, excavators, wheel loaders, bulldozers etc. The Excavator is perhaps indispensible equipment for its wide variety of applications. It is used for both constructing and demolishing a building. Leasing excavators is becoming popular by the contractors. Before renting, here are some tips to follow:

Funds

With a range of excavators available for lease selecting the right equipment is vital. Depending on the size of the project undertaken you should lease the equipment. If the construction project is small select a less powerful excavator but if the project is a big and complex one then a heavy and powerful excavator is essential. It is important not be over budget so that you are able to meet other construction expenses. It is important to select a leasing company that suits your pocket and provide cost effective services. Prepare your budget according to your needs. Always remember that you have other expenses too like land digging, clearing the construction site etc. If you are selecting to hire a contractor, know the expenditures involved in it.

Goodwill of the company

There are plethoras of companies that offer excavators for lease. It will be shrewd that you always opt for a reputed leasing company with good feedback and encouraging reviews. You should ensure that you don’t land in any kind of problem which proves to be expensive later. Always do research online and make comparisons with other leasing or renting companies, Read reviews thoroughly that are available on sites. Also look for those renting companies online that offer good customer support for 24*7 such as quick responses to your queries, providing toll free phone numbers for conversations etc.

Excavator Rental or Leasing Costs:

Excavators can be rented for stipulated time. It can be availed on daily, weekly, and monthly basis. If the excavator is big and powerful it will cost you more money for leasing.

  • Every day charges of renting vary from $350 to $1,600 or more. Below that price you can access to a less powerful excavator.
  • Monthly rates begin at $3,000 and can go up to $15,000 or more. An excavator with middle dimension of 45,000 pound would cost $6,000 to $7,000 monthly for renting.
  • Excavator rented on weekly basis charges around $1,250 and can cost up to $5,000. For lesser price you can get a 17,000-pound small equipment.
  • Construction activities have undergone drastic changes in recent times. Today constructing a project takes four months to complete. This is due to availability of heavy construction equipments like Excavators, Tractors, Scrapers, and Loaders etc. for leasing. These days’ heavy construction equipment are technologically superior and upgraded requiring less time to complete a construction project. They are beneficial to a user since they consume less fuel and are versatile and efficient in carrying out all the activities of construction such as cleaning, grading and demolishing a site.

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Best Options for Leasing Heavy Equipment for Construction Industry

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With the increase in construction projects the demand for leasing construction equipment has also increased tremendously. Construction industry is labour intensive as well as capital intensive. The contractors also need to use complex and diverse equipment such as Tractors, Excavators, and Loaders etc. Construction activities are numerous and diverse. Contractors have to manage and bring all the factors of production together such as land, labor, capital etc. Cost of all construction projects is an important factor .The contractors nave to control the budget and coordinate competent project supervision. Construction equipment are costly and the maintenance and repairing costs are also high. Specific heavy equipment requires qualified and skilled operators. Smaller contractors face financial constraints to buy heavy equipment since their budget is fixed. Bigger contractors lease or rent heavy equipments to be cost effective and also get the appropriate equipment for construction purposes.

Leasing is a lucrative option for both large and small contractors to cut down their expenses in construction projects. But there are several factors to consider before leasing heavy equipment.

 

Capital: When a contractor, project manager purchases new heavy equipment, they need to find out what are the best options available to them. The heavy equipment tend to decrease in value with daily wear and tear. So instead of making huge investments in buying them it is the best option to lease the heavy equipments to conserve money for unforeseen needs.

Equipment Supervision: Another factor to consider before leasing heavy equipment is equipment supervision. Heavy equipment such as scraper, cranes, excavators, loaders, rigging equipment are very costly. You need proper maintenance as well as dexterous operators to run them well. You may also require utilizing the professional operators to supervise the equipments and legalize their use.

Government Strategy: Government policies are important to consider before leasing heavy construction equipment. The government has laid down certain safety and security instructions regarding the superiority of the machines to be used in the construction site.

In the case of leasing, a contractor can ask for subtraction for the full price of the heavy equipment from the taxable earnings. Capital grants can be asked for the total price of the assets if you are leasing it for a time period of more than 5 years. In certain cases time period of 7 years is mandatory.

Wrap Lease: This leasing contract allows the contractors to merge some lease payments into a single, usual payment. This is an appropriate option for those building contractors who need to lease heavy equipment all of a sudden. Leasing combines their outstanding expenses and they can use it to invest in leasing new heavy equipment. This is extremely useful for those building contractors who are undertaking colossal and complex construction projects with volatile requirements and difficulties.

Fair Market Value Lease: Fair Market Value Lease is an extremely vital factor when you are considering leasing heavy building equipment. This option is beneficial in that case where there will be a fast decline in the value of the equipment due to usual wear and tear as a result of constant daily use. The repairing costs can be high too. These days a number of leasing companies are supplying services of expert workforce at no cost for performing maintenance and repairing work.

So leasing heavy equipment can be can be tricky task. Several factors have to be kept in mind before you make your decision to lease it. The article will give you all the information you need before leasing.

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Advantages and Tips of Leasing Heavy Equipment for Construction and Mining Projects

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These days leasing of heavy equipment is considered to be a money saving option without compromising on the quality of the equipment. Both for short term and long-term purposes leasing can be the best option for the contractors and project managers in the construction or mining site. It has numerous benefits and advantages. Some of the outstanding benefits of leasing are as follows:

Leasing is cheap: If you don’t have adequate capital for spending then leasing is an excellent option. It will help you to get the heavy equipment you want. In case you need to upgrade your existing heavy equipment for an upcoming construction project you may need to spend hundred and thousand of dollars from the bank. If you consider leasing the equipment it can be cheap and less expensive.

 Saves capital for future:  It is not a shrewd idea to invest massive capital in purchasing new equipment. You need to save your precious money for unforeseen emergencies, economic downturn or in case of recession in the construction sector. Leasing is the best method of preserving money for future use and put together your capital for other activities. You need to make monthly payments for leasing a heavy machine or equipment for construction. You can avail small business credit from banks for financial assistance. So it is hassle free and helps you in preventing exhaustion of your cash.

Equipment leasing is also beneficial in cutting down operational expenses of the heavy equipments and finishing all the construction projects in stipulated time.

Helps in saving taxes: Under section 179 leasing gives you reduction up to $50,000.You need to discuss this matter with your tax consultant to avail this benefit. Your construction equipment you have taken for lease must come under this section so that you can avail tax benefit.

Tips of Leasing Heavy Equipment for Construction and Mining Projects

 

Research on which equipment you need: Compare the various kinds, brands, dimensions and models online to land with the best equipment. Research is important, as it will give you information on the various leasing or rental companies that provide tractors, scrapers, excavators, loaders, bulldozers etc.

Figure out how much time is needed to hire the equipment. The time period of renting heavy equipment spans from day by day, weekly, and monthly basis. So get to know in how much time you will get the equipments for hiring.

Use websites like RentItToday or Equiprent to find the least possible prices of renting equipments: They present leasing quotes free of costs for the heavy equipment you require. Apart from these websites you can get information from the Yellow Pages or use Google for searching.

Give back the equipment in time and in good state to avoid extra fees: Make sure you return the equipment in top condition without slightest damage.

To sum up leasing and renting a heavy equipment can be a daunting task but hiring it is beneficial for both small and big contractors in many ways.

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