Plant Costing ~ with the exception of small pieces of plant, which
are usually purchased, items of plant can be bought or hired or
where there are a number of similar items a combination of buying
and hiring could be considered. The choice will be governed by
economic factors and the possibility of using the plant on future
sites thus enabling the costs to be apportioned over several
contracts.
Advantages of Hiring Plant:-
Plant can be hired for short periods.
Repairs and replacements are usually the responsibility of the
hire company.
Plant is returned to the hire company after use thus relieving
the building contractor of the problem of disposal or finding
more work for the plant to justify its purchase or retention.
Plant can be hired with the operator, fuel and oil included in
the hire rate.
Advantages of Buying Plant:-
Plant availability is totally within the control of the
contractor.
Hourly cost of plant is generally less than hired plant.
Owner has choice of costing method used.
Builders Plant