Construction Decision Management



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Traditionally, the best option for contractors who dont have a large reserve of cash is renting or leasing. The contractor who only has to calculate the rent he or she is going pay. The contractor is not saddled with equipment, which incurs a loss when left unused. In the construction industry, a general rule of thumb is that if you dont utilize a piece of equipment at least 60 to 70 percent of the time, you should consider renting. Assume you are completing a 20,000 sq. ft. construction project of a brick exterior, three stories in height, with ; , steel joists, concrete flooring over . Provide at least two examples of construction equipment that you would rent and explain why. Next, consider your two examples. Under what conditions might you consider purchasing said equipment?

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