Good construction equipment management keeps projects moving forward on schedule. This article will explore best practices, including tools professionals use to manage equipment effectively.

What is construction equipment management?

Construction equipment management involves maintaining and scheduling job site tools. Effective managers do this in a way that promotes productivity by ensuring equipment is where it needs to be – in the condition required – at any given moment.

In a broader sense, the goal is to ensure investments in equipment remain profitable. This involves continual work, especially since any busy construction company’s equipment needs constantly change as projects progress and new opportunities arise.

Equipment management falls under the umbrella of resource management. It’s used by contractors along with companies providing construction equipment rentals.

Dangers of ineffective construction equipment fleet management

It’s easy to grasp the importance of construction equipment fleet management when considering the pitfalls of handling it poorly.

Poor return on investment

Construction equipment can be quite expensive to purchase, store, and maintain. Those costs can bite into – or even exceed – the fleet’s economic benefits with improper management.

Here’s an example.

Let’s say your company purchases a cement mixing truck. As a result of ineffective construction equipment management practices, the truck never receives scheduled maintenance.

Consequently, it becomes increasingly inefficient and slows down productivity on the job site. When it eventually breaks down, the cost of repairs is much higher than it would’ve been with routine maintenance.

Combined, the cost of inefficiencies and extensive repairs may be greater than the economic benefit of the truck’s use.

Project delays

Equipment that isn’t where it needs to be is among the most obvious symptoms of ineffective management.

Picture workers on the job site filling time with low-priority tasks while waiting for equipment to be delivered so they can keep the project moving on schedule. This is a tremendous waste of resources. The equipment is not delivering economic value while in transit. Instead, economic value is being destroyed as the project stalls.

An incomplete financial picture

Any investment has an opportunity cost. Companies must consider whether their capital would be better spent elsewhere. However, it’s very difficult to determine this with ineffective construction equipment fleet management.

You see, a key part of equipment management is attaching and tracking equipment’s cost of ownership. This helps companies make informed decisions about scheduling their equipment and making additional investments.

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Tips for improving construction equipment fleet management

Now that you know the dangers of ineffective equipment management, let’s look at some tips for handling the process well.

Use construction equipment management software

Construction equipment scheduling software is an absolute must in the modern world. Equipment management has a massive impact on any construction company’s bottom line. As such, you’re at a competitive disadvantage without the most effective management tools.

You’ll also benefit from a single source of truth by using software for this purpose. This is crucial when managing something as data-intensive as an equipment fleet.

Check out this article to learn more about the benefits of centralized construction software.

Keep track of your equipment utilization ratios

You must track every piece of equipment’s utilization ratio. This will tell you whether the equipment is being used to its full potential or spending too much time idle in a warehouse.

Possessing this information comes with a few benefits.

If you notice equipment is being over-utilized, you could compare the associated cost (i.e., increased wear and tear and reduced efficiency on the job site) with obtaining a second unit.

On the other hand, if a piece of equipment is being under-utilized, you could consider selling it and renting a comparable unit as needed instead.

Set time aside for inspections and maintenance

Any piece of mechanical construction equipment requires regular maintenance. Good software will help you plan maintenance in a way that minimizes project disruptions.

Often, it makes sense (both in terms of scheduling and keeping the equipment in good working order) to conduct inspections immediately after using a piece of equipment on the job site.

If you provide construction equipment rentals, a great time to conduct inspections would be once a customer has returned the tools. That way, you’ll also be able to hold them accountable for abnormal damage to the equipment. For more information about asset management, read this blog.

Know your equipment’s limits

Construction equipment has the potential to work much harder than humans. Its capacity is not limitless, though. There are still very real practical constraints.

For example, jackhammers come in a variety of sizes. If you choose an inappropriate size, the equipment may not be capable of completing the task in the allotted time.

Avoid these situations by carefully considering your equipment fleet for your project needs.

Build a system for handling equipment requests and returns

Managing construction equipment on a first-come, first-serve basis is not necessarily the best approach.

Competent construction equipment managers typically have some formal process for handling equipment sign-outs and returns. This helps personnel keep track of equipment, facilitating effective communication regarding scheduling.

Maximize the potential of your workforce by giving job site workers in management roles access to your construction equipment scheduling software so they can see allocations and dependencies for themselves. You may find they’re much less likely to remove equipment from its intended location if they understand the ripple effects that might cause.

Implement anti-theft measures

Unfortunately, equipment theft is a very real problem in the construction industry. With so many different companies operating on a large job site at any given time, equipment tends to go missing.

According to the National Equipment Register, between $300 million and $1 billion worth of construction equipment is stolen yearly. Less than 25% of this equipment is ultimately recovered.

You can decrease the potential for unrecoverable theft by incorporating security measures into your equipment management process.

Warren CAT suggests familiarizing yourself with the market factors that make equipment attractive to thieves. This includes:

• an identifiable lapse in security

• ease of selling certain types of equipment

• light consequences for anyone caught stealing

Once you’ve identified which pieces of equipment – and job sites – are most prone to theft, take measures such as:

• giving each piece of equipment an identifying market

• keeping detailed records of your equipment (including serial numbers)

• installing physical anti-theft devices such as locks and GPS trackers

• requesting frequent patrols by local law enforcement

• hiring private guards

Recognize that workforce and equipment management are intertwined

Construction equipment and workforce management are quite similar. In both cases, the goal is ultimately to make the most efficient use of available resources.

These processes are also often intertwined. It’s not uncommon for pieces of equipment to essentially follow workers who are qualified to operate them. This underscores the importance of using construction equipment scheduling software that can help you visualize your entire resource management flow, including dependencies between individual items and personnel.

We hope this guide has given you concrete strategies for improving your construction equipment management workflow. For more resource management tips, visit our blog.

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Construction Estimating Software FAQ

What is digital construction estimating software?

Construction estimating software is used by estimating teams to calculate and predict costs for a construction project. These digital tools help streamline the estimation process from bid creation to cost analysis to ensure proposals are as precise as possible and help put forward successful bids. Getting estimates right up front is a key part of managing project scope creep in construction.

How does construction estimating software work?

Construction estimating software works by allowing users to input project details and then use built-in databases to forecast expenses. Advanced estimating software may use algorithms and machine learning to help forecast expenses. It’s important that when you evaluate your construction estimating software, you consider how it integrates with your process. You will want to pull in data from tools, like your CRM and workforce planning software, as well as information from project documents. 

What is estimating in construction?

Estimating in construction involves calculating the costs for a project including items like materials, wages, equipment, and real-estate costs. Forecasting line-by-line expenses accurately is key to creating successful bids that win contracts and also ensuring your project is profitable. Estimating is an important skill in construction, as it’s a balance act between what you think will happen and what will happen.