Category Archives: Construction

Guide to start a business of heavy equipment

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The industry of repossession is growing continuously. It offers a lot of business contingencies to the people who want to start their own business of heavy equipment. This kind of business has lot of growth opportunities. It is because this constructional heavy equipment are used for forestry, construction, mining and transportation purposes. But, to start a business, it is very important to have a strong business plan so that you can easily take your business to the top. You only have to do a little hard work and calculations to build up your successful business strategy. You don’t have to search over the internet to make your business plan. Just follow the simple steps given below and you will definitely rock.

Business plan for heavy equipment

  • The first thing which matters is the budget. You should plan your budget in such a way that you won’t face any financial crisis afterwards. Create a list of all the equipment that you are planning to get. If you have a low budget, then go for buying used equipment. Your budget should include all the money that you have to pay to the marketers as well as to the employees.
  • Now, choose a proper name of your business. Then you have to file all the exact information of DBA with the local government. After that, try to get the license of your business as soon as possible.
  • Your driver’s license should contain the appropriate classification for hauling heavy equipment. Get the license checked by the motor vehicle’s local department of the state. If you are planning for driver hiring, then check their driver license too.
  • Purchase or rent a space for commercial office. The space should have large storage yard so that you can keep big and heavy equipment in that.
  • You can also employ contractors who work independently. By doing this, you can save a lot from your budget. But, the independent contractors should have a proper insurance.
  • Lease or purchase the equipment for your company. The equipment should bear the necessary info of your company like name, address, logo and contact details.
  • Develop strong marketing strategy. Contact with the companies who are involved in financing the constructional equipment purchases. Meet them face to face and try to give them every information of your company which will help you to explore your business.
  • Now, one of the most important steps towards marketing is developing a website with proper logo and company’s name. Your website should have an attractive design to draw more traffic to the website.
  • You should join the industrial agencies such as American Recovery Association. It will help you to apprize with local and national news of business referrals.

Starting a business of heavy equipment is not so easy. You have to be very careful of every step that you are going to take. But, this thing shouldn’t demotivate you. Be brave enough to face the challenge and explore your heavy equipment business globally.

6 Myths About the Heavy Equipment Fleet Management Software That You Need To Know About

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There is no doubt about the fact that the entire construction industry heavily relies on the heavy equipment in order to finish off a construction project within the given deadline. As such, one really does not have to explain the importance that heavy equipment fleet management holds in the entire scheme of things. Though it has been shunned and criticised by a number of people, one cannot deny the fact that heavy equipment fleet management has enormous competitive advantage of its own.

Heavy Equipment Fleet Management- Myths That Need Busting

The heavy equipment fleet management software has been successful in giving rise to a number of preconceived notions in the market. Needless to say, these are quite untrue.

  • It is true that heavy equipment fleet management software allows you to have access to a number of data on the hardware of the equipment. However, if you expect the software to work of its own accord and give you returns on investments, then you are going about it in absolutely the wrong direction. You have to know the way of utilising the data s availed optimally so that you can receive huge profit.
  • People also feel that they can go for any fleet management software and the result will turn out to be the same. However, that is not the case. The heavy equipment fleet has its own set of concerns and therefore, the solution for the system, too, differs from one another. It is therefore, best to consider this aspect and go for fleet management software that caters to the individual requirements of the heavy equipment.
  • The heavy equipment fleet management software allows the concerned authorities to monitor the behaviour of the equipment operators and put a stop to misuse of the equipment along with tracking them. This allows them to cut down on fuel consumption, thereby, cutting down on the overall expense of the company. Hence, one could easily conclude that this heavy equipment fleet management software in no way intrudes on the privacy of the workers.
  • Contrary to the common preconceived notion, the heavy equipment fleet management software cannot be said to be an expensive deal in the long run. The initial purchase and installation charges might prove to be a pocket pinch, but the subsequent benefits more than makes up for it.
  • A lot of people consider operating the heavy equipment fleet management software to be an exhaustive procedure. On the contrary, operating the entire thing is quite easy only if the concerned authority have a commendable system administrator at their disposal.
  • A lot of smaller heavy equipment fleet management companies tend to think that they do not require fleet management software because of the small size of the company. However, this is a myth as small fleet management companies can make use of this system to improve things.

The heavy equipment fleet management software is quite a lucrative deal if one manages to get past the myths existing in the field.

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Don’t run after money – Give some time for business to grow

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It is pretty obvious that we all do business for money. The very reason why we end up doing a business is that we can make more money than what we could have by working with a public or private concern and of course for the very fact that we will our own bosses and no one will be there to monitor or control or work. This all sounds to be so nice and sweet as long as you are able to generate money from your business. However, the bitter fact is that for the first few years you have to struggle like anything and you get nowhere near of making any profits. On the contrary, there are high chances that you will be incurring losses and still need to pour in more money in order to sustain your business.

It is a known truth that construction business can give you so much money in a shorter span that no other industry can probably give and due to this very reason more and more people are getting into this industry. It is not so difficult to start a construction business but it is quite tough to sustain if you have one. The main hurdle is to get projects and if you succeed in getting projects, the next problem will be if you can complete the work on time. You may need different kind of heavy equipment for which you need enough reserves in hand or else you have to end up taking loan from a financial institution paying them high interest. Other than that, you need to employ able staff and construction workers and need to ensure that you pay them on time.

All this will take a lot of time to fall in place. So if you do not have the patience and if you start running after money, you will not achieve what you wanted to. If you keep earning money as your only motto then things might not go your way and you may have to wind up your business sooner or later.

Take some time to know your business:-

Every kind of business has certain tricks of the trade which one needs to be aware of. Without knowing them, you should not straight away jump into forming a company and employing people. This may back-fire you in some way or the other. So it would be important that you first take time to learn a bit about your business and once you feel that you are ready to take the plunge then start making preparations like accumulation of funds, looking out for employees, conducting interviews and stuff.

Keep reserves for the first 2-3 years:-

You business will not start generating profits from the word “GO”. For the first few years, you may experience a lot of hiccups which will gradually settle down. It is important that you give time for issues to settle as it will definitely take time and will not disappear in no time. It ideally takes 2-3 years of struggle to take a business from a toddling phase to the next level.  Once you are out of the initial phase, things will start becoming better for you.

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Caterpillar Jacket

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Jackets are not only required to protect you from cold winds but it is got to do more than what we presume. Jackets that have reflective stripes in the front and the back are there to protect workers working in industrial and construction sites. Times are gone when people worked only during the day. In this generation, where people want everything to happen at the click of a button, you have to build things faster and for that you have to deploy people who are ready to work at night. So for those resources, you have to provide them with reflective stripes jackets so that people from far can make out someone working in the site.

There are several companies who excel in producing excellent apparels but there is one name that lies above the rest of them. Caterpillar is termed to be the best when it comes to producing quality produces. Though Caterpillar is never into production of any merchandise, they have companies working for them who produce different kinds of merchandise for the end users. Once it is produced, it is emblazoned with the CAT logo. This is just one part of the story. The primary part is CAT selects the company that promises to produce the best before getting emblazoned with the CAT logo. Several companies send their products for inspection to CAT officials who on the other hand take due care to inspect the product very minutely. Only if they find the product is worthy to be inscribed with a CAT logo that they collaborate with the company and give them business.

In the same manner, jackets that have CAT logo on it are not produced by Caterpillar but before they put their logo on the merchandise, they ensure that the product is worthy to have their logo. They believe that people have faith on their logo which is why they do not bother if it is produced by them or by some other company, they just buy it seeing CAT’s name.

Caterpillar’s jackets are available in all major merchandise stores so that people do not have the trouble to buy their products. As of now, CAT has not opened its own merchandise store and puts up its products in big malls and marts all around the country. So getting a CAT jacket will not be a difficult task and one also need not worry much about its price. They are well within the budget of a common man. This means that CAT does not manufacture merchandises for the elite class but pays more attention to the wants of everybody.

CAT does not want to limit itself to heavy equipment and has spread its horizons into various zones benefitting the entire mass. One can also buy Caterpillar jackets from online store. Internet has helped the end users to be able to buy products by staying at home. Gone are the days when we had to go to a mart to buy things. Now transactions can happen at the click of a button. You like something, you pay for it and it gets delivered to your place. This is how simple buying things have become.

Principal Questions to Be Asked When Financing Your Heavy Equipment

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Established contractors prefer to finance their bulky apparatus instead of procuring it with a huge amount of money. This financing technique brings the benefits of cash flow in their trades. If the contractors want their procured equipment to be disbursed for itself as it is being employed, then the process of financing can be a development engine for their businesses. When the suppliers desire to differentiate the asset purchase with the appointing of an employee, they crave for both so as to produce their keep at the end of the day. An excellent analogy assists the employers to get the salary of the entire year on first day.

If you take the direction of financing, it is necessary to know that all the apparatus finance contracts are applicable for agreeable tariff treatment according to the benefit of Section 179 hastened depreciation. In most of the cases, the contractors can deflate the total amount of the paraphernalia in a year as opposed to lettering it off over a five year term period. The sum of write off differs from time to time. Most of the weighty apparatus companies have more than one financial organisation to vend their equipments in profitable price. Here in the article, you will get to know the most important questions that usually determine the performance of your selected finance firm.

Is the funding company a key lender?

Many kinds of money mongers are available on the souk so it is important for you to know which type of lender is suitable for your business. Usually, brokers collect money from other loan companies to run their process of business deal. Their interest rates are higher and the contracts are unsecured. The publicly-traded and bank-possessed investment organisations are mostly preferred by the construction industry.

Current Rate in the Financial Heavy Equipment Market

Generally, every moneylender in the construction paraphernalia offers fairly same rates. Be cautious of the shortest rates because the money mongers may take other charges and fees to cover up this gap. It is essential for the contractors to find out those organisations that maintain a valuable relationship with their end clients.

To enquire about the disbursement options

It is good process to verify the authenticity of the financing concerns. The reputed funding organisations proffer flexible payment alternatives for instance 12, 24, 36, 48 or 60 months. It is sensible for the contractors to choose the long term so as to decrease the amount of monthly imbursement.

Is the financing organization proffers tax benefits?

The construction business contractors should examine that whether their desired funding organisations offer any tariff benefits or not. Most of the finance deals are based on balance sheets and depreciation. It is advisable to the suppliers to discuss the matter with the tax consultants so as to select the best financial company.

Financing is an extremely effectual method of attaining new heavy equipment while controlling the monetary budget and capital flow. Knowing, with which financial company you are working, enquiring the important queries and reassessing your contract will assist you to avert unpleasant bombshells in future.

No point in buying new equipment when one can get it on rent

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Construction industry falls in that category of industries that has huge requirement of finances for some reason or the other. They need money to take care of the operating and non-operating expenses, pay the workers their wages etc. They also have to check on the kind of heavy equipment available with them so that in case there is a need to get a new machine they should have the funds to go and get it. Heavy equipment are quite an expensive stuff and one got to be ready in advance and keep the funds available to ensure that the need of the business is fulfilled. Having said this, there is one point that the owner of a construction company can ponder. In case, if they can get the same machine that they are looking for on rent rather than having to buy them, it may save a lot of money of the company and simultaneously they can make use of the funds that were parked to buy the machines to take care of some other business needs.

There is however one very important point that you should keep into consideration before you rent a machine. Since you would be using somebody else’s equipment, you should ensure that the machine has all the features that you would be requiring for the project and the machine is in good shape. You should probably take an expert with you who will examine the machine before go ahead with the deal. You should not end up taking equipment for which you have to repent in the future.

Few other pointers that you should know before you sign on the dotted line.

A brief history of the machine:-

To know a few things about the machine will always be beneficial as it will help you to negotiate with the giver. For instance, if the machine has some cases of accidents then it puts you in a position from where you can demand for a deduction in the rentals. Negotiations like these are always open and the taker must be ready to take chances wherever and whenever it is applicable. Knowing the history of the machine will also give you the idea of how old the machine is and is it at par with the construction equipment that comes with the latest technology gadgets. This will help you to decide if you should be eventually going for the deal as it makes no point in renting something that is technologically backward.

Knowing the tentative duration of the project:-

You should at least be aware of how soon you can complete the project. On the basis of that, you would be renting the stuff. Always rent the machine for an additional 2 months from the tentative date of completion. You never know if things may get delayed and you have to prolong the use of the equipment. Often the giver rents the machine keeping into consideration that he may not need the machine for a specific time and if he rents it to you he may ask you to hand it over once the terms completes. So if the work is left incomplete and he asks you for the machine, you will be left in a murkier situation. To avoid this, you should rent it for 2 extra months and keep things in your control.

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Give utter priority to the safety of workers

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In any kind of industry, the workers play a huge role in shaping up the structure of the company. They are the ones who work hard all day and night and make the future of the company bright and in return it becomes the moral responsibility of the business owners to take due care of its employees. Employees working in corporate sector may not have to put their lives on risk but when it comes to the construction industry, the workers there work by keeping their lives on the edge. Construction industry is undoubtedly full of perils and one has to understand the risks he takes before he signs up for the job. Keeping into consideration the nature of the job and the risks involved, it becomes very important for the owners of the construction companies to ensure that their workers get all the safety gears that will help them to do their job with ease and also provide safety from unwanted perils.

We will be talking in length about what all an employer can do to ensure the safety of its workers.

Wearing of safety gears is a must:-

Employers of every construction companies should make it a mandate for their workers to wear all the necessary safety gears when they are at work. The most basic is a helmet. So when they are inside the construction site, they should have their helmets on them. Other than this, they should be wearing gloves and sport a dark glass when they are into wielding stuffs. They should make use of the lifts to carry the materials with them and not carry them on their back or shoulders. There are many other appliances available that can be used to give a level of protection which they so rightly deserve.

Train the workers on the importance of safety:-

Workers working in a construction site do understand the perils involved with their job. What they do not realize is that they can be safe by wearing few appliances that can bring down the severity of perils to a larger extent. This is where a proper training is required. They should be informed that by wearing those gears they can minimize the risks. They should also be trained on how to use those gears. Some may have seen the gears for the first time in their life and will not know to use them. These sorts of folks should be trained to use the gears for their own benefit.

Negligence to safety should be avoided:-

Most of the times, it has been found that workers are negligent to wear any safety gears as they feel that the work does not involve much risk. Well, this kind of negligence should be avoided. There should be a mandate for all the workers have to follow the safety parameters while they are at work. The most common form of negligence is not wearing helmets inside the construction site. If needed, there should be a person appointed to supervise if all the workers have their safety gears on and if not then they should be asked to wear it before getting their hands on the job.

Heavy Equipment EBook

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When you have the desire to learn something, you somehow manage to find the relevant resources and learn things up. Same goes with learning about heavy equipment. Knowing or learning about heavy equipment are no rocket science and one can easily understand the complexities involved in it. If you intend to learn about a specific type of equipment since you would be working with that type of machine, then you can find many books and materials available in stores that will help you to gather details about the equipment. However, the best way to learn about heavy equipment is to search it on the internet. There you will get good lot of information that you will find to be very helpful in your cause.

One of the most popular methods of learning about heavy equipment is to download an EBook from the internet. There you will every last information about the stuff you want to know and that will be absolutely free of cost. This means that you do not have to spend time looking for books in book stores or contacting anybody in particular who can deliver the details to you. All you have to do is download the stuff on your computer or tablet and whenever you desire to learn about the equipment, you got to switch on your computer and open the stuff from there. The advent of EBook has made things very simple for readers who are enthusiastic in learning things but do not have money to buy the necessary resources.

Ideally most of the EBooks available on websites are free but that does not mean that all are for free. There are few writers who do charge a nominal fee for the book. It could be because they have written the book and do not want to take the hassle of looking for a publisher who will be publishing it. So the most convenient option available with them is to upload it on their site as an EBook and try to list it on online shopping portals. In this way, they can earn few bucks just by sharing their knowledge with the people who are ready to take it from them. Alternatively, it also gives people the opportunity to read famous authors/writers who have ample knowledge about the subject they are writing on. Instead of paying more at bookstores, they can simply buy it online and can manage to keep the stuff with them as long as they want.

No fear of losing a page:-

When you have a book on heavy equipment, you got to take it with you to the construction site where you will be going through the book and operate the machine. This leaves you with high chances of tearing the pages and in this process it might become completely unreadable. On the other hand when you have an EBook, all you got to do is carry your laptop or tablet with you and go through the stuffs written on it while you are working with the machine.

Save paper:-

You save a lot of paper by not buying a book. You work your way out using the information from the EBook. In this process, you are doing your bit towards saving the environment.

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Workers working in construction sites are prone to various air-borne diseases

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We say that the human race is developing but it seems that we are making things that will cause more harm to us than ever. We make things for our ease but in this process, we forget that there are certain repercussions that we have to face and without wanting to know those repercussions we do things that affect us the most. Our environment is so polluted that every other day we get to see people dying of lung disorder, heart failure, and asthma attacks and so on. If we talk about people working in construction companies, we will find that they belong to the worst affected lots and are infected with various air-borne ailments. They have to go through a lot of dust that is so prevalent in a construction zone. Fresh air is so seldom for them and they are simply left with no other option than to inhale the polluted air.

It is not only the dust that they inhale but also the smoke that comes out of heavy equipment. Most heavy equipment run on diesel and after a certain period of time they emit smoke and intoxicants in large quantity that becomes unhealthy for the people around. There is primarily one reason why machines emit black smoke. It is particularly due to lack of proper maintenance of the machine. The equipment work for months without much lubrication and the engine oil also is not changed at regular intervals. This leads to problem in the engine and if the health of the engine is not good, it is bound to emit intoxicants in the form of black smoke.

What construction companies/employers must do to safeguard the health of their workers has become a matter of discussion and many companies are incorporating the following measures to ensure that the lives of their workers is not taken for granted.

Proper maintenance of machines:-

Intoxicants in the air are one of the major reasons for the falling health of construction workers and machines emit intoxicants due to improper maintenance. To get this fixed, the only way is to ensure that the machines are maintained at regular intervals. It is quite obvious that the operator may forget to send the machine for maintenance. Hence, a calendar must be prepared where you jot down the date when you will take the machine for a wash and get it serviced.

Procure heavy equipment that are environment friendly:-

Many construction companies are in the process of acquiring green machines that will not emit or will emit less toxic in the air as compared to the ones being used currently. Though the equipment will be expensive but will last for more years and will also not pose a risk to the health of construction workers.

Set up camps to check the health of workers:-

Construction companies should take the initiative where they set up camps at least twice in a year and conduct a complete health check-up of its employees. They should not just restrain it to the laborers but also include staff and guys from other departments.

Hire, Purchase or Lease – Which One is better for Your Next Heavy Equipment Investment?

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Presently, construction industry is blooming but in a slow speed. In this situation, is it better for a construction company owner to lease, procure or rent a bulky paraphernalia? According to Peter D. Gregory, the senior vice president of the reputed construction group of Atlanta commented that right now the condition of the market is tentative that’s why the construction company owners are hesitating to procure heavy equipment or go for leasing deals. Yet, the construction concerns still require bulky paraphernalia to accomplish their task on the site.

In large organisation, the construction business possessors hire equipment managers and chief financial officers to give suggestion on the issue of renting, leasing or purchasing the heavy equipment. On the other hand, in the budding construction firms, the owners alone take the decision. The presidents of some of the well-renowned construction companies stated that the decision entirely counts on the financial condition of the organisations. To determine, which one is the most suitable one needs some logical prediction and forethought. Here in the following piece, the readers will come to know the difference between the buying, renting and leasing a heavy construction equipment.

Renting, Purchase and Leasing Options for Construction Site Contractors

Rent option helps the contractors to save their capital. Often, they choose the option of renting when they require a specific item for a particular task. Some of the well established construction merchants stated that renting is more costly than lease and purchase options because it provides flexibility to the clients.

When the contractors procure heavy construction apparatus, the dealers not only proffers instant ownership but also subtracts the depreciation cost of the equipment. The interest the possessors get form the deduction helps the construction firms to conserve their tax amount. Majority of the construction organisations prefer to buy heavy equipment parts as it adds as a valuable asset in the in the balance sheet. But, the majority of the budding construction owners prefer to go with the lease option because of the Alternative Minimum Tax (AMT).

Lease is yet another option that is facilitated to the construction company owners by the dealers. It is the best choice for those organisations which are not efficient enough to utilise the depreciation. Other than ownership, this option also provides usage pact with typical no money upfront quality.

Comparison Between Lease, Rent and Buy of Heavy Construction Equipment

For long term use, the charge of the lease is much lower than the renting cost. Therefore, it is sensible for the contractors to avail the benefits of leasing heavy equipment for long term basis. If the construction company owners desire to attain the equipment, then the outright purchase technique is more economical to other alternatives.

On the other hand, for short term purpose, the option of renting heavy construction apparatus is the best. If any construction concern owner wants to go with the buy option, he/she should asses some factors like time duration of the application of the equipment and its maintenance cost.

To sum up, it can be said that all the above mentioned options of availing the benefits of heavy equipment are beneficial to the construction owners unless and until they have the skill to attain it in proper way.

 

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