The construction practitioner is faced with the myriad problems
of managing the demands of the project and at the same time
keeping costs at bay. The challenge is formidable and the
true mettle of the construction manager will be tested.
The practice of rental / leasing of construction equipment
is an option that will result in substantial savings if done
properly. Here are some pointers to when considering this
option :
KNOW THE REQUIREMENTS OF THE PROJECT
Knowing the exact machine requirements and specifications
for the project is the first important step. When in doubt,
explain to the lessor the project details so they can recommend
what equipment will best work for your project . They can
also help you organize the additional supplies you'll need
to complete the job correctly.
ORGANIZE THE WORK AREA BEFORE RENTING THE EQUIPMENT
Before finalizing the rental of equipment make sure that
the work area in the project is ready before actually bringing
in the rented equipment. Rental charges begins once an equipment
is taken out.
READ BETWEEN THE LINES OF THE RENTAL CONTRACT
It is best that a careful review and perusal of the contract
is made to enable the lessee to understand the terms of
the contract. Rental rates, hours, policy for returns and
responsibility for the equipment are important things to
know before actually signing the contract.
LEASE OR RENT?
There seems to be some confusion over the differences between
the term rentals and lease.
Renting is a viable option when a contractor needs a piece
of equipment for a short period of time only. Renting especially
makes sense when:.
The equipment is expensive and buying the equipment is
something you can't afford;
You'd like to experiment with brands, models and accessories
before actually buying the unit;
You would not want to tie up your capital base for equipment
purchase;
When storage space is a problem.
A lease covers an extended period and there are penalties
and fines for ending the contract, as well as a responsibility
to maintain and keep the equipment in good condition.
VALUE ADDED ADVANTAGES OF RENTAL / LEASING
Mobility - A contractor would not need to bring his equipment
to areas far from their home base because lessors , most
especially ACEL members, are found all over the country.
Log in at ACEL's website: www@acel.com.ph to see a listing
of ACEL members.
Savings & Better Borrowing Capacity - Cost control
is realized because there is no downtime in equipment and
no maintenance or repair costs are involved. Also, rentals
increase your borrowing capacity by improving the ratio
of assets to liabilities in the balance sheet.
Safety & Expertise - Safety and quality work are assured
because the right equipment is used for a specific job.
Inventory Control - Only the most basic equipment are kept
on hand. Storage and disposal of equipment do not pose a
problem.
