The United States of America is the second-largest market for construction projects. The current dominant force is China, yet experts are positive that the Chinese market will only retain its place within fifteen years. As of July 2016, the total GDP produced by American construction projects summed up a total of $784.9 billion, according to the US Bureau of Economic Analysis. It is a colossal growth considering that only 2 years ago, the GDP generated from construction was approximately $150.2 billion less. Experts from the Ken Research also concluded that by 2030, the construction industry will be able to reach a $15.5 trillion milestone.
Considering this data, it is important to take note that there will be more construction projects in America. Hence, the demand for heavy equipment like a mini excavator will escalate (until a new standardized machine replaces it). Such a machine is a basic requirement for any construction project regardless of the magnitude in terms of time relative to the intensity of the labor.
One of the first key concerns of a project manager is to how much to rent a mini excavator. The cost of a mini excavator is always relative to a lot of factors that determine the overall details of the enterprise.
The key to acquiring the best deal in terms of the return on investment (ROI) is to figure out how the actual cost of acquiring the machinery pans out.
Total Cost Enumeration
In terms of how much to rent a mini excavator, it is important to consider that exact price range per duration category differs depending on the dealer. By rough estimate, a project manager or director overseeing the activity is looking at an average cost of around $200 to $500 a day. If one prefers a weekly rental deal, the cost would be anywhere between $800 and $2,500. For per month rent contract, the rate is generally around $2,500 to $4,500.
Considering the average prices based on the three categories of duration usage, a project manager has a good idea on what type of deal he or she may sign the project up. Long-term projects that may span at least a year could save up to 60% of daily spending when signing a monthly rent.
Other than the cost of the mini excavators themselves, it is important for project managers to keep an eye on possible extra charges. For instance, some dealers would account the cost of attachments used per day that could range roughly anywhere between $50 and $800 a day. Other costs to consider are skilled operators included in the package deal, which one would pay separately from the contractor for an average cost of $20 to $50 per hour.
To Rent Or To Buy?
The question of how much to rent a mini excavator sometimes results to project managers shifting to other means of acquiring the aforementioned machinery. In this particular case, the possibility is available for purchasing the mini excavator via a lease option. The reason why construction companies often eventually end up buying the equipment has a lot to do with its own advantages, especially considering the duration of the project or the frequency of several projects booked on a tight schedule.
When compared to the average mini excavator rental rates, the cost of buying the equipment has a sounder ROI for those whose projects extend beyond years. One can purchase a mini excavator that has a dig depth of around 5 to 7 feet for $25,000. For mini excavators with a quarrying depth of 10 feet, the average cost of purchase is $30,000 to $40,000. Lastly, a $60,000 worth mini excavator can burrow a total depth of 12 feet or more. Buying extra excavator buckets could cost an average of $1,000 while essential accessories like drilling auger or bucket thumbs could be anywhere between $5,000 and $10,000.
Tips: Making Every ROI Count
There are a number of serious considerations one must factor while deciding to rent a mini excavator for a certain project. Other than the mini excavator rental rates themselves, project managers must also account for the preventive maintenance costs.
- Quality Machine vs. Economy Machine: Per daily maintenance accrues an average of $4 per working hour. As per the weekly rate, the preventive maintenance entails a total of $160. For 250 working hours, the preventive maintenance is worth an average of $1,000. For every 500 working hours, it is $2,000. It goes without saying that short-changing for machinery rental cost at the expense of performance quality is a very bad ROI. Cheap mini excavators either break down easily or consume huge volumes of fuel, which is roughly $2.16 per day. Therefore, renting a top-notch condition mini excavator that delivers excellent performance for an estimated rental fee of, let’s say, $3,500 per month is a sound deal if it is used for a short-term and relatively minimal construction project.
- About the Insurance: Given that the mini excavator rental rates are a primary concern for project managers it is, therefore, important to narrow down all the financial resources into the basic necessities of the project. Simply put it, have to pay thousands of dollars worth of damages for the mini excavator is indeed a very bad deal. One must guarantee that the equipment has a good insurance before signing the rental deal.
- Non-performance Weather: A focal point of negotiation is the possibility of a construction project being put on hold due to hazardous working climate. Whether the project manager is paying per day or per month worth of rent, the hours or days of canceled working period is a total waste of money spent on renting. Skillful negotiators can broker as much as a 50% discount on the payment deadline.
In most cases, this maneuver entails an accurate and comprehensive documentation in order to successfully acquire the proposed concession. It is also important to discuss this issue prior to the signing of the rental contract.