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Equipment hire and rental surely have a lot of benefits for small and medium-sized construction firms and contractors. For starters, it allows them to avail of quality equipment without having to buy them on their own. This can greatly help in cutting down on expenses, especially if the materials are needed frequently. However, there are also some drawbacks that you should be aware of. So before deciding on equipment hire or rental, you need to consider your needs carefully.
Saving Money
One of the major problems you may encounter when hiring equipment is its short term usage. Most construction projects do not last longer than a year. You can either purchase or lease the equipment that you need so there’s nothing to worry about. However, some construction projects which are just a year-long are still best rented rather than buying. This way you’ll be able to cover your financial requirements until the project is completed.
If you want to save money in the long run, it would be wise to choose an equipment hire
company that is well-maintained. Ideally, you’ll want to choose a company that offers equipment hire with warranties as well as maintenance plans. The equipment hire company you are considering should offer both types of insurance and guarantee programs. The more it offers, the better. One such company is Active Hire.
Precautions
Before you sign up for equipment hire agreements, make sure you have all the necessary documentation and information. First, take time to read through the agreement carefully. Get to know the things you are signing so you won’t have any surprises later on. By doing this, you will avoid confusion and penalties later on.
Some equipment hire companies require you to have a written notice about the total loss. This is to make sure that you are covered in case the equipment was lost during an accident or if the equipment was stolen.
Make sure that you are informed about the total loss in the equipment hire agreement as well as the total price for repair and replacement. Your total loss should be clearly stated and included in the hiring contract. It would be best if all parties involved had a copy of this document.
Some hirers may not charge for shipping and delivery charges when you’re hiring forklifts or any other equipment. But be sure to check first if they are providing these services or not. Also, never be in a hurry when it comes to hiring equipment. A reputable equipment hirer should be able to deliver the goods to your location within the shortest time possible.
When you’re hiring construction equipment, you need to remember that you have no rights when it comes to the purchase cost. Never go with the first offer that’s made to you. Take the time to compare prices, ask questions, and take note of what each company’s terms are. Then, compare the total purchase cost so that you’ll know whether the offer is reasonable or not.
Signing an Agreement
Be very careful in signing the agreement. Make sure that everything is completely understood and that there is no ambiguity involved in the document. You may also want to consult a lawyer before you sign. An experienced lawyer can read through the entire agreement and explain the implications of certain clauses to ensure that there are no problems in the future. Make sure that the contract you sign is completely fair to both the owner and the hirer.
There are some things that the equipment hire agreement should cover. The most important one is a liability. The owner and the hirer must be both protected in case there is an accident.
It is also a good idea to look into the type of equipment you’re hiring. If you’re going to use forklifts, it is important to make sure they are well-maintained.
Other Considerations
The best companies will always provide their clients with top-quality equipment that has been well-maintained through inspections and service work. They won’t cut corners when it comes to safety either, so they won’t be hiring employees who haven’t taken care of their machines well.
Some other things that you should consider when looking for an equipment hire agreement include the types of jobs that the equipment will be used for, as well as the number of years that it is allowed to be in use. There may be some instances when you require newer equipment, but it would be unreasonable to expect that you’ll get your hands on all the available new models.
For this reason, you need to look into the minimum hire periods that companies require their employees to have. While some companies may choose to let their employees rent and use their equipment during these minimum periods, others don’t. So you should find one that has no minimum hire periods so you can save money when it comes time to bring in new equipment.
