Following points should be considered before taking a final decision to hire the construction equipments :

  1. If the construction equipment is required for a very short period or that the equipment is useful only for a single project, it is better to hire the equipment than to purchase it.
  2. There is no problem of either storing or maintaining the equipment if it is taken on hire.
  3. If the required equipment is available in the market with a short notice, it is preferable to hire it.
  4. If the equipment is taken on hire the probable amount of investment can be utilized for some other profitable purpose.
  5. There is no worry of obsolescence of equipment.
  6. The equipment can be returned after use.
  7. If the contractor feels that the equipment is immensely useful for his project for a period longer than the expected one. He can go in for getting it on hire purchase basis. It means the equipment can be had without making full payment of price of the equipment. In the beginning, only  a part of the cost is paid and the remaining amount is paid subsequently, in a reasonable number of installments. These installments can be considered as hire charges. This serves two purposes: 1) Immediate investment can be avoided, and 2) The equipment is ultimately purchased.
  8. Contractor has to take into consideration various aspects of the project work, duration of work, future chances of acquiring further projects and financial position of his firm. Then only he can take a decision either to hire the equipment or to purchase it.