Most construction companies are not willing to risk the usual. As a result, they settle for the ordinary. But being innovative in the construction industry means tolerating calculated risks. And for the execution of such calculated risks, organisations rely on state-of-the-art heavy construction equipment. However, there is a massive dilemma that most companies face in this industry. Should you buy heavy equipment or rent it? If your project schedule is hanging in the air because of this dilemma, then you should know that renting heavy equipment is always the best option.
Najco Qatar offers some of the most reliable heavy equipment like excavators, dump trucks, boom trucks, mobile cranes, etc. Here’s why you should always consider renting rather than buying.
1. Affordability comes first
The most obvious reason for renting heavy equipment instead of buying is that it is cheaper. You may think that repeated rentals would soon amount to the purchase price of the heavy equipment. But this is not true because when you buy heavy equipment, you incur a significant invisible cost. This is known as the cost of lifetime ownership. It includes the cost of maintenance, repair, and even the depreciated value of this equipment.
2. Keeping with the times
When you buy a piece of heavy equipment that costs hundreds of Rials, it becomes a company asset. However, when a newer model is released, you are left with an obsolete piece of equipment. This can hinder your business growth because you will not be able to bid for tenders that require state-of-the-art equipment. The logical solution to this is not to invest in such a purchase in the first place.
3. Balance the books smarter
Another benefit of renting equipment instead of buying it is the tax incentives. When you buy heavy equipment, it drains your business capital and is hence known as a capital investment. Heavy taxes are often levied on such capital investments. On the other hand, you can book the costs of renting heavy equipment directly to your client. Moreover, you could even book them as business costs and gain tax incentives.
4. Cut logistical costs
Owning heavy construction equipment means you will have to take it with you on all your projects. For example, if you are based in Doha but have a construction project at Al Khor, your equipment will have to travel all that distance, which can incur additional transportation costs. Instead, if you choose to rent heavy equipment, this logistical cost is usually included in the rental cost. Hence, you do not need to incur additional costs for transportation.
5. Focus on core competencies
Fleet management is a cumbersome task if you choose to own your fleet of heavy construction equipment. If you purchase heavy equipment, you will have to maintain an in-house fleet management team for transportation, storage, logistics, and equipment servicing. However, when you rent equipment, you can do away with these laborious tasks and focus on your core competencies.
Hence, by renting heavy equipment, you can cut costs, reduce human resource involvement, and focus on your core competencies to achieve better business growth. With so many advantages of renting heavy equipment, it is an obvious choice for most construction businesses. Hence, Najco Qatar provides dump, flatbed, and boom trucks, forklifts, man lifts, excavators, and even vehicles like TATA, Ashok Leyland, and Eicher buses.
You can easily get in touch with Najco to avail the best offers tailored to your unique construction requirements.