How are you managing your equipment? You may have leases and payment plans, some pieces sitting dormant on the lot and others being driven into ditches by employees who weren't supposed to be operating them in the first place. Are there any simple steps to better manage your equipment?

Simple steps? Probably not. Equipment management is a fairly complex — and expensive — area for all but the smallest construction companies. With so many moving parts (both literally and figuratively), it's all too easy to lose track of valuable pieces or leave operational procedures to chance. The best approach is to develop an overall equipment management program that allows you to track all your assets from acquisition to disposal.

3 big questions

To get started developing your equipment management strategy, ask yourself three big questions:

1. Should I lease or buy? First, take a look at your typical project types and develop some criteria for making this decision. Generally, leased equipment is best suited for shorter term projects, while purchases may make more sense for longer term jobs. Examining your usage patterns can help you evaluate your equipment needs and determine whether you've made the right decisions in the past.

2. Who will be using and servicing my assets? Untrained or unauthorized employees operating a piece of equipment can have dire results. This is a costly problem for many construction companies. Your equipment management program should include specific training regimens for every asset and a regularly updated log of which employees are authorized to operate which pieces. Think of it as a necessary part of your safety program. And to avoid getting stuck without qualified operators, keep a "live" list of qualified service providers.

3. Is our permitting and storage up to snuff? Lack of proper permitting can trigger fines that drive up your costs throughout the year. Similarly, faulty storage procedures can lead to damage and theft, which will further elevate your equipment costs. Factor your local permit requirements and expenses into your overall equipment management program and establish clear storage practices for every asset.

Integrate, integrate, integrate

As mentioned, the three queries above are just a starting point. You may also want to consider acquiring asset management software that allows you to integrate equipment leases/purchases and usage data into your accounting system. Doing so can significantly shorten the amount of time it takes to track your equipment and eliminate most questions as to who is operating what and when.