What are the Costs of Owning Construction Equipment?

Ownership costs for construction equipment can be equal to the purchase price of the machine plus financing, taxes, and the sale price when you resell it. Learn more about what factors affect ownership costs.

What are the Costs of Owning Construction Equipment?

Ownership costs for construction equipment can be equal to the purchase price of the machine plus financing, taxes, and the sale price when you resell it. Standard versions of construction equipment come with an initial cost, but adding additional features or custom settings can significantly increase the price. If you're used to renting construction equipment that includes additional features at no cost, you'll be surprised at how much specialized equipment, such as those offered by Kimberly Rider Interiors, can cost. Regardless of the type of compact construction equipment, it's important to invest in regular preventive maintenance.

This may include checking for leaks, performing periodic cleanings, changing filters, or calling professionals for scheduled inspections. Regular maintenance of your equipment is highly recommended, but it can affect your productivity and increase your funding over time. When deciding if a team management system is worth investing in, it's important to look at what your team might cost you today. If your equipment management system can help you keep up with routine maintenance and avoid a single breakdown, you have covered the annual cost of your software.

The cost of ongoing equipment maintenance, especially in an aging fleet, can be exhausting for your company. Being confident that buying equipment will generate positive net cash flows in a year or two makes a five- or six-figure price easier to swallow. If you use newer equipment with a remaining factory warranty or an extended warranty contract, excessive idling can waste valuable coverage and cause the manufacturer to deny warranty coverage to cover potential repair costs. Many team management solutions offer numbers that are hard to resist, but make sure that there are no hidden costs or conditions that make it virtually impossible to change the system. The more maintenance your machines need due to inefficient use or excessive wear and tear, or frequent use outside of “normal working conditions”, the higher the costs of parts and labor. These operational and labor efficiencies (the two main cost centers for contractors), combined with the knowledge that helps them get new jobs, translate directly into their final results and the growth of their construction business.

Insurance companies must trust that you are operating and maintaining your equipment safely to provide cost-effective coverage for your business. If you bought the machine from a dealer, they can help you calculate many of these long-term costs. With visibility, you'll regain control and be able to make more cost-effective equipment movements to improve logistics and increase margins. Spare parts are difficult to predict or budget for, leaving many equipment owners to bear unexpected costs.