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BUY, RENT OR LEASE ?

When it comes to acquiring construction equipment, there are a number of factors to consider when it comes time to decide whether you rent, buy or lease. The first thing to consider is how often the piece of equipment will be used. This includes looking at your current needs and workload as well as factoring in your projected future needs. If you are using the equipment 65 % of the time or more than you are better off buying the equipment or choosing a lease to own option. If the piece of equipment is something you are only planning on using occasionally or seasonally or if it’s a piece of specialty equipment that you only need for a small number of jobs you should probably consider renting. Other factors to consider include calculating all associated costs, transportation of equipment, repairs and maintenance, working capital, depreciation, and resale value.

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In the case of Diaphragm Wall equipment, the scale just amplifies. A bare minimum unit consisting of a grab carrier, mechanical grab, a crawler crane, a backhoe loader, skid-steer, slurry treatment plant, desanding unit, a fleet of dumpers, diesel generator and miscellaneous equipment can cost upwards of USD 800,000.00.

Many agencies do not rent or lease these equipment and can need significant documentation proof in terms of projected pipeline of work and financial guarantee to secure a lease or rental agreement with a minimum contract period of 18 months. Whether one decides to buy, lease or rent these units, the Transportation, Mobilization and Installation costs are always borne by the lessee and are significant too, often in the range of USD 120,000.00 to USD 200,000.00 for a 250 mile haul.

The following sections deal with the cost of buying, renting and leasing Hydraulic Wall Grabs, whilst also briefly discussing these costs associated with the other heavy equipment in the Diaphragm Wall unit. 

Economics : Rent, Buy or Lease ?: Intro

THE ECONOMICS

We shall discuss the cost of buying, leasing and renting a hydraulic grab first and also briefly cover the cost of establishing an entire unit.

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1. Diaphragm Wall Grab (Hydraulic) :

  • Purchase Cost : starts from $ 42,000.00 (or $ 3500.00 per t of fabricated weight);

  • Lease Cost : starts from $18,800 per annum (or $ 1566.67 per t of fabricated weight) for a minimum leasing period of 3 years;

  • Rental Cost : starts from $2,520 per month ( or 6% of purchase cost) for a minimum rental period of 1 year.

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*The above costs exclude  the cost of the winch, wire rope, kelly bar, control unit, shipping and transportation costs.The smallest grab would require 1 flatbed trailer to transport which could cost upwards of $8/mile within the USA. 

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2.​ Base Carrier (min. 250 HP, Crawler mounted) : 

  • Purchase Cost : starts from $ 350,000.00 (or $ 4200.00 per t of fabricated weight);

  • Lease Cost : starts from $ 115,000.00 per annum (or $ 1400.00 per t of fabricated weight) for a minimum leasing period of 3 years;

  • Rental Cost : starts from $14,000.00 per month ( or 4% of purchase cost) for a minimum rental period of 2.5 year.

**The above costs include  the cost of the winch, wire rope, kelly bar, control unit, but exclude the shipping and transportation costs.The smallest base carrier would require at least 3 flatbed trailers to transport which could cost upwards of $21/mile within the USA. â€‹

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3.​ Crawler Crane (min.180 HP, 75 t, 60m reach ) : 

  • Purchase Cost : starts from $ 280,000.00 (or $ 4000.00 per t of fabricated weight);

  • Lease Cost : starts from $ 91,000.00 per annum (or $ 1300.00 per t of fabricated weight) for a minimum leasing period of 3 years;

  • Rental Cost : starts from $11,000.00 per month ( or 4% of purchase cost) for a minimum rental period of 1.5 year.

​***The above costs include  the cost of the winch, wire rope, frames, boom and control unit, but exclude the shipping and transportation costs.The smallest crawler crane would require at least 3 flatbed trailers to transport which could cost upwards of $21/mile within the USA. â€‹

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Economics : Rent, Buy or Lease ?: Welcome

LOOKOUT FOR THESE

  • Most of the grabs and base carriers are manufactured out of Asia Pacific or Eurasia. Consequently, the lead time for procurement of a new grab is around 45 days and that of the base carrier machine is 120 days;

  • The final cost may vary significantly due to foreign exchange fluctuations and the need for elaborate payment terms like Letter of Credit and Telegraphic Transfer, 

  • The leasing and rental options are hard to secure. There are only a handful of companies which lease equipment and warrant intense scrutiny of the past profile and forecasted pipeline of works in order to lease or rent;

  • The other miscellaneous equipment like slurry treatment plant, desander units, bar cutting and bending machine are not available for lease or rent and are often fabricated as per the project requirement. These usually cost upwards of $90,000.00 to fabricate and commission.

  • The cost of procuring and replacing consumables like cutting teeth and hydraulic oil are borne by the lessee

Economics : Rent, Buy or Lease ?: About My Project

LOOKING TO BUY ?

End to End Solutions

This section lists a few manufacturers (in no particular order) who have presence all across the world with at least one operation center in every continent. Almost all of them offer highly integrated solutions for the Diaphragm Wall industry right from the grabs to the base carriers to the slurry treatment plants to operator training and certification, apart from on-site support.

LIEBHERR

Liebherr is a specialist heavy machinery and construction equipment manufacturer since 1949, and as such can extend extensive customization options.

SOILMEC

Soilmec, established in 1969, specializes in the design, manufacture, and distribution of equipment for the ground engineering industry and offers a host of hydraulic and mechanical grabs across the BH, GH and GC series.

BAUER

BAUER Maschinen, founded in 1790, through its subsidiary BAUER-Pileco , is a specialist foundation engineering and equipment manufacturing company. It offers a host of hydraulic and mechanical grabs across the DHG AS, DHG B Vario and DHG V series.

CASAGRANDE

Casagrande started manufacturing equipment for diaphragm walls in 1963. Over the years, it has developed a complete range of machines in order to meet the project requirements. It offers a host of hydraulic and mechanical grabs across the KRC, KG, G and PM series.

Economics : Rent, Buy or Lease ?: Projects

LOOKING TO BUY ?

Specialist Grab Manufacturers

This section lists a few manufacturers (in no particular order) who specialize in the design, manufacture and distribution of grabs.

THE GRAB SPECIALIST B.V.

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The Grab Specialist B.V., based out of the Netherlands, has 50 years of experience in the design, development and manufacturing of grabs for the dry bulk cargo-, dredging- and recycling industries.

TEC SYSTEM

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A subsidiary of the Soletache Bachy group, specializing in manufacturing of construction equipment and parts for foundation engineering.

IMECO AUSTRIA

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Since 1979, IMECO Austria, have been distributors, dealers and exporters of new and used machines and equipment for infrastructure and civil engineering projects.

HOUSTON MACHINERY

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Houston Machinery, established in 1980 and based out of Hong Kong manufactures specialized equipment and tools for ground engineering applications

Economics : Rent, Buy or Lease ?: Other Projects

LOOKING TO RENT, LEASE OR BUY USED EQUIPMENT ?

This section lists a few manufacturers (in no particular order) who have presence all across the world and offer options of renting, leasing or buying used equipment and tools used by the Diaphragm Wall industry.
Almost all the manufacturers mentioned in the previous sections offer assistance in buying used equipment, tools and spares.

Economics : Rent, Buy or Lease ?: Clients

USED FOUNDATION EQUIPMENT S.P.A

BAUER MASCHINEN

BECO GRABS

UNDERGROUND CONSTRUCTION BUYER'S GUIDE

NEED SPARES ?

Now that you have a fair idea of the construction equipment, explore the next section to learn about the job management and safety aspects related to this operation.

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