Essential Tips for Companies Leasing Construction Equipment

Apr 2, 2025

Leasing construction equipment is a great choice for companies working on various kinds of projects. Some of the benefits associated with leasing construction equipment include lower upfront costs, access to current technology, and increased flexibility. The following key tips associated with the leasing process can help companies avoid common mistakes associated with leasing construction equipment.

Read and Understand Lease Agreements

Every agreement is different, so even if a company has successfully executed multiple leases with a regular equipment supplier, it’s still recommended to carefully analyze each contract. Important information to evaluate in lease agreements include payment schedules, early termination clauses, penalties for late payments, insurance requirements, and damage fees. Hidden costs to watch out for can include processing and commitment fees, deposits, and origination fees.

Research Maintenance Costs

The lease agreement should disclose maintenance responsibilities that should be undertaken by the company during the time leased construction equipment is in its custody. Companies should plan regular maintenance of leased equipment to avoid significant repair costs and ensure equipment performs optimally. Understanding maintenance costs helps companies avoid any penalties or additional fees from the leasing company.

Analyze the Quality of Customer Support

Equipment leasing companies may not all provide the same quality of support in the event of a breakdown. For time-sensitive projects, companies should select equipment leasing companies that will swiftly facilitate access to parts, replace equipment, and guarantee highly responsive field support.