Rent or Buy Construction Machinery

Construction is, by its nature, a very complex and time-consuming endeavor. Sure, you could throw up a house very quickly in a very rough way, but you would probably have problems. Maybe you forgot to seal the home correctly, so now you cannot keep the house warm. Maybe the piping was done too fast to make sure that there were no drips or leaks. However, in order to do the job right, you need machinery, and that machinery can get very expensive.

For many new construction companies, there is just not money available to purchase the newest in construction machinery. Often, they make enough to pay the workers and buy new equipment for the next job, as well as a meager profit. For these construction companies, it would be a dream come true to have all the newest machinery at their fingertips.

Many people don’t realize how much money it costs to get a tractor. Not only does a construction company worry about buying the tractor, they have figure in money for insurance, hiring someone to actually use it, set aside a budget for maintenance, and make sure that there is a spot set aside for proper storage. All of these for one simple tractor creates a very expensive payment. For many companies, they have enough jobs and profits to cover the benefits of paying for these machines.

Renting can be a great option for construction companies that just do not have the capital to buy such expensive machinery. A simple tractor alone can cost as much as $15,000. This is the kind of money that many starting companies or construction companies going through hard times simply cannot afford on their own. For this reason, they may take a few hundred dollars in order to have a tractor for a day to get that part of the work done. It is more costly per job than to just have a tractor, but eventually, when a company has grown, they can afford to buy one.

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