The Advantages of Buying Used Construction Equipment

By James White

As the economy picks up steam and your construction business grows, you may find yourself at a crossroads: Will you stay small, or will you expand your operation to take on more jobs?

There are many decisions to make when growing your business, and one of the biggest is about equipment. You can always hire more workers and increase your marketing strength without too much trouble, but the bottom line is that you can only take on as much work as you are able to send machinery to. You can line up tons of jobs, but your customers will experience long, frustrating wait times if you only have one excavator for getting that foundation dug.

New construction equipment requires a huge investment, though, and financing a brand new backhoe or dump truck can be a challenge. Luckily, you don’t need shiny, new equipment to get the job done. Purchasing high-quality used machinery has plenty of advantages:

Price
The most attractive aspect of buying used heavy machinery is that it simply costs less than a new machine. Despite what the manufacturers may want you to believe, construction equipment technology isn’t growing by leaps and bounds each year, and a used backhoe loader from 2013 is going to be just about the same as one from 2016. The biggest difference? It will cost thousands less to make it part of your fleet.

Insurance
Just like a car, your heavy machinery needs to be insured, and it gets expensive. Most policies base their premiums on the current value of your construction equipment, so you’ll pay lower premiums to insure equipment that is older and less valuable in the eyes of the insurer. Quality used equipment gets the job done and keeps saving you money in the long run.

Peace of Mind
Buying a new piece of heavy equipment can be fun, but it can also be nerve-wracking. No one wants to be the first guy to dent the shiny new toy, and you may find workers going more slowly to protect the equipment. Some caution is appropriate, but not to the point that it slows your work schedule down. With a used piece, the psychological damage of dents and dings is much less.

For additional peace of mind, narrow your search for used construction equipment to a qualified dealer with an extensive inspection process. Buying used equipment doesn’t mean picking up someone else’s banged up castoff – you can find a fully inspected, tuned-up and clean item for a great discount.

When you’re ready to expand your construction business and take on more jobs than ever before, investing in used construction equipment is one way to make a smart financial choice. Carefully planned expansion is the key to your future success, so make sure you choose the right investments in your business.

James White is an experienced home improvement blogger and construction worker. His writing has appeared in many publications, including True Look, EHS Today and Building Blok. James is involved in promoting the ideas of sustainable building and construction safety. And, when he’s not saving the planet through his blogging, James revels in exploring the latest developments in the construction and manufacturing industries, its history, its advancements and where we will be tomorrow.

Have an idea for a guest blog for Construction Today? Contact alan.dorich@phoenixmediacorp.com or jim.harris@phoenixmediacorp.com.

The Advantages of Buying Used Construction Equipment was first seen on Construction Today Blog

How Business Intelligence and Advanced Fleet Analytics can Drive Increased Revenue

By Ulrik Pedersen

Heavy equipment companies today have a huge amount of data at their fingertips – from machine IDs and location to internal ERP data and external data like weather. Companies that use this information to their advantage can become “data-driven” organizations – meaning they can make relevant and quick decisions based on data, and ultimately improve their bottom line.

But, looking at the myriad information available can also induce headaches. How do you make sense of it all to deliver relevant insights? By applying Business Intelligence (BI) and advanced analytics, heavy equipment companies can gain valuable insight into their fleets, better understand customers’ needs, and increase ROI.

Data Discovery

The first step toward becoming a data-driven company is the data discovery phase. This is where the organization takes stock of the data it has access to, and begins tracking changes over time. For example, a heavy equipment company should measure when rental equipment is being utilized to ensure employees and/or customers are being productive with that equipment. A BI tool can tell you which models are being used a lot, and which aren’t. BI can also help you determine maintenance needs. Reviewing the total maintenance on a particular piece of equipment compared to its income will provide perspective into the resources that are available, and allow you to predict when a breakdown will occur.

Data Delivery

Once the data discovery stage is complete, the data delivery phase begins. It’s important for data to be deployed company-wide, but this can get tricky, as different people within the company want to view data in different ways. For example, the CEO may prefer daily metrics with a high-level overview of results tied to key performance indicators. But, they likely won’t be interested in all the details and configuration. On the other hand, the IT operations team would prefer to see exactly how the data was sliced and diced. Heavy equipment companies should utilize a tool that not only provides flexibility but adaptability for user adoption, to ensure each title within the company gets the right information they need to make intelligent decisions.

Gathering all of this data and distributing it across the company might seem like a daunting task. And, for companies doing this on their own, it would require a large IT team. But, many BI and analytic tools available today allow the company to streamline this process. Analytics can help you use data to maximize efficiency and ultimately, increase your revenue.

Ulrik Pedersen is COO and CTO for TARGIT. He grew the organization from a startup team of three people to 25 highly skilled and dedicated individuals and he catapulted the number of TARGIT clients in North America. He holds a master of science in economics and business administration, B2B marketing from Aalborg University.

Have an idea for a guest blog for Construction Today? Contact alan.dorich@phoenixmediacorp.com or jim.harris@phoenixmediacorp.com.

How Business Intelligence and Advanced Fleet Analytics can Drive Increased Revenue was first seen on Construction Today Blog

Patios, Paths and Walls in Birmingham in November

Even though it’s only two weekfrom Xmas 2015 at the time of writing this we still have an order book that is filling up well in to the New Year.  Long may it continue and special thanks to our fantastic customers who have been happy to spread the word about our tarmacing, block paving and hard landscaping services. For your delight and delectation here are a few photographs of the work we carried out/finished in November 2015. [caption id=“attachment_205” align=“alignleft” width=“168”] back garden deck in yardley[/caption] [caption id=“attachment_207” align=“alignleft” width=“300”] Small wall in back garden. Pic taken in the summer.[/caption] [caption id=“attachment_208” align=“alignleft” width=“275”] Site Preparation For A Garden Wall And Patio[/caption]

The following article Patios, Paths and Walls in Birmingham in November was first seen on http://www.birminghamdriveway.co.uk/

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Dealing with Problematic Suppliers and Subcontractors

By Eric Halsey

As contractors’ projects grow increasingly complex, networks of suppliers and subcontractors have grown. When difficulties arise, the added complexity can create added headaches. Worse, the subcontractor or supplier can file a claim on your bond.

So what can you do about problematic suppliers and subcontractors? Here are our top tips for avoiding potential hassles and getting on with running your firm.

1. Start With a Firm Understanding of Your Surety Bond and Obligations

Start by understanding your contract and surety bond. A misunderstanding over the contents and obligations of either will likely lead to problems. Begin by taking a look at a detailed surety bond description to ensure you’re familiar with the ins and outs of your bonds. You need to use conflict management and early actions to avoid having a claim filed on your bond at all costs.

If a claim is filed successfully, you may not be able to get bonded again, putting your business at risk. Additionally, you’re responsible for paying that claim – a key difference between a surety bond and insurance.

This also applies to all other bonds: you may have several on a single project. For more details on each of those bond types, you can reference this comprehensive contractor license bond guide.

2. Make Your Subcontractor Relationships a Priority

 

Simple things like the tone of your interactions can also have a real impact. When you’re choosing a bid, you’re choosing a company to partner with. Treating that company as a partner and not as another employee can help set a positive tone and set of expectations from the start. For more tips on building those relationships, check out Tim O’Brien’s advice.

Keeping your payments consistent and predictable makes an enormous difference. Starting with a good contract goes a long way towards making payments and the process for unpaid payments predictable.

But if your own unpaid invoices are forcing you to delay payments to subcontractors, you have other options, such as invoice discounting or factoring. This allows you to sell an unpaid invoice to a third party in exchange for most of the money upfront. If this can allow you to greatly reduce turnaround and keep your income consistent, it can more than make up for the fees involved.

3. Review Your Contract Carefully to Prevent Conflict Before It Occurs

 

You can start by reviewing this in-depth article explaining the ins and outs of commercial (as well as some relevant residential) construction contracts. In there, you’ll find some great tips for using legal tools like flow-down provisions to ensure that the legal expectations you’re placing on your suppliers and subcontractors are clear from the beginning.

Clarity improves greatly when you’ve developed good relationships with everyone involved, from the lawyers drafting the contracts to the suppliers and subcontractors themselves.

What kinds of problems have you experienced with suppliers and subcontractors? What could have prevented them?

Eric Halsey is a historian by training who’s been interested in U.S. small businesses since working at the House Committee on Small Business in 2006. Coming from a family with a history of working on industry policy, he has a particular interest in the surety bonding industry with a focus on construction and shares his knowledge for JW Surety Bonds.

Have an idea for a guest blog for Construction Today? Contact alan.dorich@phoenixmediacorp.com or jim.harris@phoenixmediacorp.com.

 

Dealing with Problematic Suppliers and Subcontractors was first seen on Construction Today Blog

Driveways and Patios, October 2015

Finally got a bit of time in the office to post up some pictures of work done in October this year.  From driveways in Perry Barr to patios in Edgbaston, we were all over the town in October and it’s getting busier and busier.  When most companies are thinking of hanging up their boots for the winter we are going from strength to strength. Bookings are looking good for the new year and I have no doubt that 2016 is going to be our busiest year ever! [caption id=“attachment_202” align=“alignleft” width=“259”] Tarmac Drive in Dudley[/caption] [caption id=“attachment_200” align=“alignleft” width=“300”] Granite and Slate Paving in Perry Parr[/caption] [caption id=“attachment_201” align=“alignleft” width=“221”] Tarmac drive in Edgbaston[/caption] [caption id=“attachment_199” align=“alignleft” width=“275”] Block Driveway in Perry Barr[/caption]

Driveways and Patios, October 2015 is available on Birmingham Driveway Surfacing Blog

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