Construction Equipment: When What You Have Is Not Enough
Being in the construction business, you generally have to feel your way out of various contracts. More to the point, when you put in a bid for a project, you have to know exactly what equipment you need and what it will cost to operate that equipment on a daily basis. Your bid is a rough estimate of the expected costs with the intent to outbid others vying for the same project. However, you may find as you go along that you need more construction equipment than what you said you would need. What do you do then? It goes something like this:
Keeping Costs VERY Low
You have to operate within the parameters of the bid you gave. That means that you cannot buy more construction equipment because that would send costs through the roof. So, you have to find alternative means for keeping the added costs very low. In fact, the extra costs should almost be negligible, and should easily be covered by cutting something else from the budget.
Contractor Equipment Rentals
Renting your extra equipment is definitely one way to keep costs low. Hardware stores will rent or lease all the little equipment items you need. Contractor equipment rental companies will rent you the bigger items. Even so, the rental prices are much more reasonable than going into debt to buy the equipment yourself, and it will definitely help you stay on track with the project at hand.
Making Side Deals with Other Contractors
Making side deals with other contractors can work for you or against you. It is a tricky business move, but sometimes it is just a necessary one. Essentially, you ask other contractors if they have the equipment you need and then ask if it is available. To use it without racking up monetary costs, you make an agreement or contract with that contractor for whatever he or she wants (which is often quid-pro-quo for use of equipment but can include you agreeing to back down from a major money-making project so that the other contractor has a shot). Then you can get the extra equipment you temporarily need.
Test-Drive or Beta-Test Equipment
If you desperately need to go even lower with costs on additional equipment, consider test-driving or beta-testing equipment. This is usually brand-new equipment that has not hit the market yet, and the manufacturers want some feedback on how it performs. Not only do you get to try out the latest equipment for free, but you can use it on your current project site. You may even decide that a particular piece of equipment is a must-have for future projects. You can place an order with the manufacturer for one of the first machines to roll off the production line.