₦airaland Forum

pictures please. i'm into heavy weight equipment hiring/renting/leasing,may be we can do business together. also your location or yard is very important.

The equipment leasing and hiring strives most during the dry season than the raining season. More emphasis on income generation will be harness during the dry season. Land preparation the advent of the business toward the quick achievement of desire result in construction industry and many companies invested their larger parts of their resources toward this.
The current road network situation in the country will be an added advantage to the business to pave the way of elevation to its peak success. To provide solution to this road problem, there is a need for large use of heavy weight equipments which will be an added advantage for whoever who is investing in the business now.
The investor has an opportunity to comment, contribute or adjust the above business planned by bringing his opinion. Negotiation on the operation or financial package is also welcome. A proper M.O.U will be sign by all party(ies) involved.

@fromparis
read through from page one to two and ask me whatever not clear or you will like to know about the biz. i'm here to do biz with serious investor(s).

Due to the growth in economy there has been a direct growth in the construction equipments. There are construction projects around every corner in Nigeria. There are construction of buildings, apartments, roads etc many new projects coming up. As the scope in this business is increasing there are many small time contractors or individuals who wish to enter into these ventures. This has resulted in the growth of acquisition of construction equipments.

All business men do not have the same potential as large contractors to buy all the equipments. The only options left are to buy used construction equipment or lease the equipments as per the requirement. While leasing also refers to leasing of equipments periodically as and when required or leasing for longer durations.

Many new businessmen view renting or leasing as the best option for trying out new projects at an additional cost and with no strings attached with the possibility of buying. They have time in their hand to figure out whether their company is flourishing or floundering and then accordingly take the required action. Even while hiring they hire good quality equipments like Aggregate equipments.

If they find the business flourishing they can buy the equipment to avoid losing the invested equity. If the businessmen find the business is not making good profits and feel the sense of an uncertain future, the perspective buyer may feel renting the equipment as a better option. They may rent the equipment when required and then give it back to the owner when the job is done.

The businessmen can even buy used construction equipments for sale at cheap rates. While buying used equipments it is necessary that you buy equipments of good branded company which generally have along running life. You can select from used Capitol equipments for sale or Aggregate equipments for sale.

Buying used construction equipments has gained so much preference that they are widely available on sale at the internet. There are many websites which offer auctions on these equipments. You can register yourself and bid your price online .before buying from the internet make sure that you do not get deceived by the looks of the equipments.

Check out the condition of the equipment to understand what price suits it. You can also check out hiring companies from the internet only. There are many companies which hire equipments. It’s very important that you compare few prices of leasing the vehicle so that you have a rough idea about the charges.

Secondly read the clause of hiring the equipments. Check that there are no additional costs incurred. Check out if there is a pick up and drop facility of the equipment or it has to be arranged on your own.

If it has to be arranged by the contractor see that you hire the equipment from a place which is closer to the project so that you do not spend extra transporting the equipment to the project site.

let us see to ur fear together so that we can find ways of how to manage it because i believe in managing risk instead of avoiding it.

@olanshi

nice one but are you not considering renting for sometime while we are also looking for buyer at thesame time. May be you are thinking about DEPRECIATION?
consider this:
A properly maintain machine will have maximum depreciation of about 5% in a year,mathematically if this machine depreciate for 5% @N70m we have 3.5m. if this thesame machine work for let say just 150 days within the one year at minimum income of @250,000 daily, we have N37.5m.

gross income for 1 year @ 150 days minimum =N37.5m
depreciation ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, =N3.5m
other expenses (imaginable and unimaginable) =N3m
---------
total expenses 6.5m
less expenses from gross income N6.5m
-------------
Net income N31m
--------------

NOTE:
valuing this equipment at the end of the year at worst scenario will be N65m after one year of use but leaving it for sale will be opportunity cost. i'm just suggesting this base on my knowledge and how i can think about business. Swamp buggy is a special machine for special work with special treatment. it goes to work with operator and wedder at all time.

Maintenance is also a key factor in equipment leasing; if your equipment has less downtime the client cartel will always recommend the equipment to other. Proper maintenance prolongs equipment life span (preventive/plan maintenance rather than breakdown); the equipment requires servicing after running 180-200 hrs of operational time.

The operator must daily greasy all moveable part of the equipment. It’s strictly recommended that after using the equipment for a period of 3year should be put on sale to cut down maintenance cost and downtime.
The staff professional conduct and safety precaution during operational hours go a long way in customer satisfaction and help to maintain good relationship.

@sholaeco
check your inbox

In fullment of my promise to you, i will like to let you know that nigeria as whole does not have any database as per transportation(whether in maunfacturing or assembling) in the country. This is to tell you that any information giving to are unofficial and may not in any way near or far from what is obtainable in nigeria market. having said this, nigeria is very large and populated that, is not easy for anybody or organisation as the case may be to confirm to the acuracy of the information you requested but some popular or accessable companies can be use as a case study like iveco,mecedez benz,man and mack cmpanies.

Nigeria can be a very rewarding market for any companies that take the time and effort to understand market conditions and opportunities, find the right partners and clients, and take a long-term approach to market development. With strong growth prospects in many industry and service sectors, underserved market segments, a growing and increasingly sophisticated consumer base, and a strong affinity for companies products and conutry culture, opportunities are impressive; but so are the challenges including inadequate energy and transportation infrastructure, weak institutions, the threat of crime and corruption, and reoccurring episodes of regionalized political instability and violence. Nevertheless, those companies that take a careful and informed approach to the market can do well and develop longstanding and profitable business relationships and operations in Nigeria.

this is cup track Dozer. another part that is very important is turbo charger,as the throat is for being also the turbo for engine.

Things to look after in buying machines are:

PAYLOADER
sound engine,transmission,center pin. tyres, the bucket and the history of the machine if possible,the performance of the pumps(lifting and transmission).

DOZER
engine,transmission,down gear or normal gear,undercarriage( this is the most very important part of the machine,undercarriage makes dozer good or bad because is the power base of the body and it make up of down and top rollers,segments,links and slippers,the pistine use to tension the legs and cross bar). its has two types of track such as narrow and wide,the best is wide track of about or minimum of 30cm wide. it may be normal slippers or cup slippers.

EXCAVATOR
thesame with Dozer exempt transmission instead it has turning table,if comes with two buckets will be an added advantage,also the pumps.

GENERAL TO ALL
filters (engine and transmission even water filters),holes if possible for easy change in case of anyone boast, air filter(primary and secondary).

Lekki free trade zone project is commencing early next year. i talk about this because is a mega project that needs alots of machines to be at the site for leveling sand and excavating. also govt just gave miners licenses of recent for dredging and every dredging site needs minimum of 2 dozers and payloader on the site. those dredging companies don't buy machine,they hire from outside,thesame with most of these road construction companies around. they all hire most of the machines they are using putting their logo on it. thesame with individuals/companies that buy large piece of land for estate hire this machines for clearing.

Recently a number of development projects by government and private sector companies have created opportunities for construction companies to reap massive revenues.
all this are the foresight investors. get involve one way or the other and you will never regret that you invest your money/effort on this business

Road construction can not be completed without finishing with Grader. Grader is a multi-duties work machine that put good leveling to surface of the land.

The day to day running of the business and agreement for all jobs shall be rest with the manager and he must ensure that all proceeds after which commission has been paid to the company account as agreed upon. He is also responsible for the monitoring of operational performance of the equipments and also scheduled maintenance with the report to the management.
proper maintenance prolongs the life span of any equipment. The equipment after running for maximum of 240hrs shuold be serviced(all service accessories must be changed).

Nigeria has large expanse of undeveloped Land requiring road construction to link many parts of the country with other parts and construction of low cost housing to accommodate many of its city dwellers.
Also that many state governments are coming to terms with the importance of sticking to Master plans and town planning laws means that in coming years many large scale construction projects will be embarked upon.
Major infrastructure like good road networks, that will support development are lacking and hence is a major cause of inadequate foreign investments.

This has prompted governments at both state and federal levels to embark on long term infrastructural projects. State and Federal governments are looking for alternative sources of revenue (non-oil based sources) like taxation which depends largely on available infrastructure.
Of recent, crude oil deposits have been found in some parts of Nigeria implying that very soon infrastructural work would begin in surrounding areas. However, this is also dependent on security as the Niger delta is highly notorious for security threats from Militants.
Telecommunications companies are always embarking on expansion or maintenance projects this affords many construction companies opportunities to maximize income. Infrastructural and Development Projects (Mega city project)
Most state governments have realized that foreign investment is only possible when an enabling environment such as one with sufficient infrastructure exists.
Of all places in Nigeria, real estate investors are taking position in prime locations like Ikeja, Lekki and Ikoyi constructing commercial and residential buildings like Luxury Apartment buildings, office buildings, Mini estates, Hotels and Event centers.
Refuse collection and disposal has always been a problem in Lagos hence the government partnering with the private sector in managing refuse collection and disposal. Even at that, Lagos is still far from having efficient refuse collection and disposal centers

You don't need to have 20 machines to get construction contract, all we need is to know who is who and package ourself professionally.

One job well executed will introduce many contract,very simple business.

Challenges and threats

Corruption is still an issue in deciding government contracts as many top government functionaries try to manipulate bidding and award of contracts in their favour or that of their cronies. But that is gradually taking a back seat as most contracts these days are usually based on merit unlike in times past.

The good news is that equipment hiring does not necessarily depend on Government contract but if you have your way to their approval of contract too,you will smile for it in as much that their entitlement goes to them. One contract from Government sector can change someone history from being managing to abundant financially so if you have the source it will be an added advantage.

asking too much but lazy on bed!

@Kunle-A

Monitoring this type of business is going to be the challenge.

This is the area you are going to find interesting about the business, Monitoring is going to depends on the type of management style you are going to prefer.

there are two type of management style in the business:

1)  The owner is the boss: in this situation, owner make the final decision of where to work,how to go about the work, money to be charge for the work and when to work.  the dos and don'ts of the business lies with owner while we implements your instruction at every giving time.  The primary responsibility of us is to get good and reliable operator with experience. Also to make sure of proper maintainance of the machine with adequate safety in place. Manager collect salary with field commission as agreed upon by the both parties.

2)  The owner is an investor: here, the dos and don'ts of the operation is in charge of manager. We takecare all the conditions above while we pay agreed amount to the investor at agreed interval such daily,weekly or monthly.  Manager take home whatever left after investor interest has been taken care of.

The Federal Executive Council (FEC) has approved a total of N64 billion worth of road contracts, yesterday during its weekly meeting. Out of the total sum, over N53billion was approved for roads in the Niger Delta, while N10billion was given for roads in the Federal Capital Territory.

While briefing pressmen after the weekly FEC meeting, which was chaired by President Goodluck Jonathan, the minister of information and communications, Dora Akunyili alongside the ministers of state for FCT, Caleb Olubolade; Niger Delta, Samuel Ode; Power, Nuhu Wya and Information, Labaran Maku said the Niger Delta road contracts constitute a major component of the post amnesty intervention projects of the federal government to improve the road network in the Niger Delta region.

The road contracts awarded include; Ogriagbene-Torugbene road in the sum of N12.875billion;Re-construction of Benin-Abraka road in the sum of N9.750billion; Orhorho junction-Odorubu-Kpakiama-Bomadi road in the sum of N9.635billion; 35km Okputuite-Mbato junction-Orie market-Lomara 9Igwebuike road in Abia State in the sum of N9.01billion; Omelema-Agada 2 road in the sum of N6,22billion and rehabilitation of Okpuala-Igwurunta road in the sum of N6.411billion.

^{most of this contractors does not buy machines of their own but they hire.}

Read through this, it will put smile on your face.

https://www.nairaland.com/nigeria/topic-412344.0.html

You will be surprise of what leasing/hiring/renting business is all about. let your money work for you not the other way round.

https://www.nairaland.com/nigeria/topic-412344.0.html

^^^^ two things are very important in conversion:

mechanic and parts use for it. if the two are well supervise then you are good for it, it will take like one week to do a proper job for you.

compactor

compactor can be two drum or one drum with two tires at the back. the tonnage is very important when buying compactor because it determine the price to hire it out. smtimes the two drums is better for road construction.

@Me sef

that is the truth but u know all they are doing still make no sense.

about 70% of our total budget is on recurrent expenditure while the remaining 30% on capital expenditure is under their cunning ways to loot.

i dey laugh oooi tire ooooo

one truth against more than 300 lies =fight

i can only be part of spectators but who is going refs?  tuff one
 

The NLC should wade in and call for a strike. That's the only pragmatic solution because I dont see government winning.

NLC executives too are not just calling for strike if they are getting their own share. it is when the cake is not being share equally that they call for strike. bird of a feather, may God help Nigeria's majority in the struggle.

Ladipo is the best place to do this because all the parts you may need to put it in right shape are there meanwhile if you have choice get the right model dashboard yourself.

so of the mechanic do manage wrong dashboard by adjusting it one way or the other. i did mine at abule addo after alakija but the guy went to thesame ladipo to get everything needed so if you see somebody around the place(ladipo) it will be better for you.

you will enjoy it if you don't manage wrong part on it. some of the right hand drive cars also has their steering position holes at the left hand. it doesn't cost too much

What we plan together we achieve together. i know what the market can offer but the problem is capital, God will help us.

This is how some of the lowbed look like. there are many types you can get in the market even some are using hydrolic system to operate both the bed and slippers. but what matter most is the tonnage and head that hook the bed.

Also, you can invest on low-loader. low-loader is just like trailer like truck which we use to move equipments to sites,this is very lucrative area of the business because it does not necessarily wait for only equipment to work. its can also convey other loads from one place to another just like flat body. its charges depends on distance and the maintainance is just like any other truck but with specific instruction. it does come with the bed at the back with slipper and the tonnage of the bed will determine what type of machine it can carry. the best among is minimum of 60 tonnage with 20m width.

Good to know. That's a lot of investment. Is that for a 950 or 966? I see some of them has either E or H at the end. Like 950E etc. Who pays for the transport from job site to site? How much is that?

yes, its alot of investment but worth investing on. either or both are good in this environment, the difference is just the size and where you use them to work. 966 is more heavier compare to 950. both can move to site on a short distance but we use lowloader if the site is far from yard while the client bear the cost of carrier to and return back to the yard. we called that one mob and demobilization.

Wouldn't it take a long time to get the money back?

In less than a year payloader payback its original cost and can work for minimum of three to four years before resell to reduce/avoid high cost of maintainance. the income per day at minimum is N50,000 with minimum working turnover of 18 days in a month.