Need of Plant Management * Equipment is the critical resources in the most of the construction project. *The cost on equipment involve long-term capital investment ranging from minimum around 10% and upto 40% of the total cost of the project. * Equipment management decision have significant impacts on the economical viability of the construction projectPlant Hiring: A brief History * Plant hiring system started in UK during the 1930’s economic depression, when many construction company had not sufficient workload to justify the purchase of a equipment they needed. *The hiring system of construction equipment has introduced a new dimension for contracting field making available choice among range of equipment on hire. Many construction companies freed from the burden of having to own and maintain uneconomical equipment. During reconstruction after second war hired equipment were on great demand, since then the market for hire company is continually growing.Plant Hiring: A brief History in the context of Nepal * Initially there were only a few government organizations such as Department of Roads (bor, Department of Irrigation (Dol) etc., who used to hold fleet of construction equipment. These equipment were supposed to use under their departmental construction work activities like road and canal construction. + Most of the equipment holding by DoR and Dol were accumulated as a result of handing over by foreign donor agency or contractor after completion of the construction project in the country. * Equipment Hiring system was initiated by DoR during the late sixties and seventies. Contractor used to take equipment on hire usually through the Heavy Equipment Divisions located in different part of the country. * Since the 1980’s some of the private contractor also started holding some equipment and is gradually growing consequently private hiring company are now exist. * Now there exist Heavy Equipment Entrepreneur Association of NepalFunctions of a Hire company * The main purpose of the equipment hiring firm is to supply required type and sizes of construction equipment on hire basis as demanded by the contractors. The emphasis of a hire company is obviously the market oriented and the profit oriented. The basic function of a hire company is to hold and manage fleet of different size and capacity equipment that requires for construction works. Establishing hire rate including terms and condition for each and every equipment. Providing equipment on hire basis as demanded by contractors. Providing require maintenance and servicing support at job site for equipment provided on hire. Overall management of construction equipment that includes fleet planning, operation and maintenance management and office administration.Need of an equipment Hire company Most contractor usually holds only a few pieces of small equipment/ hand tools, all other equipment as required for project are hired from the hiring company. The reasons behind this facts includes; * Principally the main objective of a contractor is to complete the project within given time and at optimum cost. For which equipment are vital ingredient but owning them involve additional capital investment and holding them involves management complexity so many contractor do not wish to have extra burden so long as if equipment hiring company is available. Usually various types and sizes of construction equipment and different amount of works may required for any construction work, but the contractor can not afford for all required equipment. Some very specialize equipment may required for construction of a particular project to fulfill and accomplish the specified quality and quantity of work but volume of work may be very small which simply can not afford by a contractor. Equipment gets obsolete due to_ technical advancement. Frequently replacing with new equipment is not financially possible for the contractors.Establishing equipment hiring company Establishing an equipment hiring company involve huge sum of capital investment and technical expertise. So in-depth knowledge about equipment and market study needs to be done before starting such company. There are usually two better options that are naturally being develop as equipment hiring company one by the equipment maintenance organization itself as they are familiar with equipment and market scenario within the area. The other one is by the construction. company starting as a hire unit from its own equipment fleet and expanding gradually as per the market demand. However, to take decision before for establishing equipment hiring company following facts needs to be considered and critically analyzed. * Existing and future plan for construction project in the vicinity Requirements of types and sizes of equipment in the market Existing company working in same or similar business Threat and opportunity from the competent Availability of skilled technical manpower and operators Market fluctuations Government policies for development of construction industries; etc. eee noeOrganization structure of equipment hiring company The organization structure of a hiring company depend upon the nature and size of the company and business objectives for which they are established. An independent hiring company require to deal with all management function that includes; marketing, financial, purchasing, maintenance, store, hiring and field operation etc.. The hiring unit established as a division of a construction company may have different structure as they integrate some management activities like purchasing etc. with the parent company. Board of Director Managing Director Purchase/ Maintenance Marketing / Stores workshop ring .atlan structure ofan independent hiring company Account/ AdministrationOrganization Structure: Heavy Equipment Division Heavy Equipment Division is an Equipment Maintenance Office under Department of Roads, responsible for repair and maintenance of constriction equipment and vehicles running under department and also serving as hire operation unit for the equipment working other than departmental work. 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