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Blog


The real cost of late or faulty hire equipment

Thursday, February 15, 2018

 

NAS Associate Member, Simon Gray, Commercial Director at Nationwide Hire highlights the hidden costs

If your company hires in equipment that’s delayed, faulty or left on site longer than necessary, spend a few minutes totting up the extra charges and staff time and you’ll be surprised to find out what those delays really cost. In our experience around a quarter of hire invoices exceed the original quote. Hidden costs can mount up and can push your project over budget, by hundreds, if not thousands of pounds.

Let’s take a typical example. If equipment arrives late on site, you could be paying twelve to twenty-five pounds an hour for each salaried worker or contracted labourer standing around waiting for a skip to arrive. If you’ve a team of six on site waiting for a scissor lift, you’ll be paying out hundreds of pounds if there's a 3-hour delay.

Watch those extra hire and consumable costs; delayed collection charges, waiting time on site or aborted journey costs if the driver can’t deliver or collect due to site complications on the day that weren’t planned for, or negotiated in advance. You are also responsible for the safe keeping of any equipment hired up to collection, so if it’s damaged or stolen, replacement or repair could be expensive.

A reputable national supplier has the buying power to negotiate fixed hire charges in advance, andchecks charges are correct at current market rates before invoicing you, saving you time and hassle.

Technology can also help. Our Nationwide Hire portal allows customers to pre-book and check equipment hire, delivery and collection dates. We have reliable and reactive reporting processes in place making sure equipment arrives, is collected on time and the resources to find replacement equipment in a hurry, keeping your project bang on schedule.