Learn How Renting Equipment is an Option for Smaller Contractors

Huge building sites and construction projects get a lot of attention from the press and the public. But all over the country, projects are also being worked on and successfully completed by smaller contractors. Many of these consist of little more than one or two people trained and skilled in construction and maintenance, working with some general workers for extra manpower.

In some cases these skilled people have gone out on their own due to being laid off or leaving big construction firms for some other reason. Others work independently simply because they prefer working for themselves as small business owners. Either way, small businesses and independent contractors make an important contribution to the economy. They do face some challenges, though.

One of these challenges is having all of the right, specialized equipment available for use on project sites.

Large contracting and construction firms usually own all the necessary tools and heavy equipment, but this can be a challenge for the smaller contractor, for the following reasons:

  • The high purchase cost of some equipment may be out of reach of the business.
  • Tying up capital in equipment that is only used occasionally may adversely affect the cash-flow situation in the business.
  • Maintenance and repair costs can eat into the profitability of the contracting concern.
  • Storage space can be problematic. Some contractors operate from home or very small business premises, making it difficult to park or store larger vehicles or pieces of equipment.
  • With a lot of complex, expensive equipment, there is always a risk of damage, theft or loss due to fire, flood or other disastrous event. Insuring against these risks adds more fixed running costs to the business.

For the small contractor especially, leasing from an equipment rental company as required makes a lot of sense. The equipment can be rented when needed, used and then given back. This allows the contractor to simply budget the rental costs into their project quote and not have all of the fixed costs, risks and hassle that go with owning a lot of equipment – especially if a lot of it stands idle most of the time.