Construction companies must assess the economic life of assets

Broken machinery and old software systems create unwanted problems for companies, but how can you ensure that you do not spend money unnecessarily on new equipment and repair or replacement services?

Make an informed decision

A decision needs to be made on whether to take no action, replace or repair equipment. Storing up to date data surrounding performance and costs will help you answer questions such as;
• Costs and expenditure required should equipment break down
• Replacement vs repair costs
• How much to spend on repair and maintenance services
• How much will repair cost over the remaining lifespan of the equipment
• How does the price compare with replacement/breakdown costs

Is repair a cheaper option?

Repairing equipment can sometimes be cheaper than replacing it. Staff can continue to work on a system that they are familiar with without needing to undergo training. However, older machines will require more maintenance over a number of years and some parts may be difficult to source if anything goes wrong.

New equipment reduces operational costs

New equipment will run quicker and will require less maintenance. The downside is that it may take time to get used to a new system, training costs will cause delays and finance costs for the new item will need to be covered.

Find a suitable software system

A good software system helps staff keep on top of construction asset management and make the right decisions. Overall, companies need to take in the following factors before making an informed decision:
• Breakdowns are costly to a business
• Assessing the economic life of equipment is a financially sound decision
• Companies should make informed decisions on repairing and replacing
• No-matter how successful a company is, not looking after equipment and systems is commercially unsound