Tips to Consider Before Signing Rental Agreement

Construction companies and contractors are continually seeking the most cost-effective methods of completing their projects. As construction businesses are currently experiencing a slight boom period, renting equipment continues to offer benefits that appeal to both budget and performance.

Most contractors opt to avoid the headaches associated with owning heavy equipment and rent instead. The cost of routine maintenance, warranties, transportation, repair, storage and insurance adds up to a big overhead expense. Depending on the size of your construction business and consideration of the above expenses, your next step is to look for a proper rental company.

Rent It Today provides rental listings to construction equipment rental companies nationwide. Popular choice rental providers such as Blueline Rental are included on Rent It Today’s active rental listings.

There’s much to consider when deciding on a rental provider to do business with. If you’re a contractor, you must determine what the most important requirement from a rental business to match your needs.

• What are the pickup and delivery times?
• Are rentals daily/weekly/monthly?
• What happens if equipment breaks?
• What are your rental rates?
• What are return policies?

It’s important to take note of the above questions and be sure to ask them when you’re present at your local heavy equipment rental store. Not all rental businesses are the same and most have varying rental policies, which leads to the next topic: rental agreements. For contractors with a keen eye, the bottom line of renting vs. owning keeps capital investment, maintenance and selling equipment off of your balance sheet and on the companies instead. That being said, there’s a few standard items to consider before signing a rental agreement contract.

Rental Rates – Determine the amount of time you’re going to rent the materials. Most rental companies provide a minimum 1-week rental period requirement. Above that, you’re looking added weeks and monthly rates–overtime charges excluded. If you work the equipment above a designated hour quota, you’re open to extra fees. Ask what those fees are.

Payment – The industry standard requires all rentals to be paid in advance. Rent should be payable before delivery of equipment. Remember, overdue payments will bear and added interest charge depending on the supplier’s agreement conditions.

Transportation – Rental companies load and deliver rental equipment at their own expense and load the equipment back to the rental store. If the customer doesn’t specify shipping instructions, rental providers will transport the equipment at their own judgment.

Maintenance/Repair – Customers should not remove, alter, disfigure or cover up any numbering, lettering or insignia displayed on the equipment. Carelessly rough usage is highly advised against. The customer should maintain the equipment at their own expense. This includes: all fuel, oil and lubricants and all repairs and replacement of broken/worn out parts. Rubber tired machinery is subject to customer expense. Punctured, cut or general tire wear included. Bucket wear on dozers and skid steer rentals are also left to renter to replace in case of serious damage.

Inspection – Before equipment is loaded for transit to customer, the customer may require an inspection of the equipment by a competent authority. If the machine is not proven to be in the condition required by the Agreement, the cost of inspection is left to the rental company.