Contract Surety

Get An Edge: Equipment Rental



Although the allure of building a fleet of incredible equipment has always been tantalizing for construction company owners, renting is turning out to be a great strategy for growing a business. This is especially true right now, when agility provides a competitive edge. 


Ebbs and Flows

Back in 2021, disruptions left contractors with few options: renting and buying used machines was generally the best way to keep projects going. Industry experts point out that although today’s market conditions are different, renting remains a viable strategy in the face of “high demand and increased business costs,” and note that,“overall, there are more rental machines on any jobsite than ever.” Indeed, strategic equipment rental can be key in helping contractors navigate the ebbs and flows of their work and the market, as these examples point out:

Most contractors’ worst nightmare is a downed machine. A machine requiring unexpected service and parts increases costs and decreases productivity. The loss of a machine can sometimes extend a project’s schedule by weeks, and…increases labor costs. Renting machines adds another layer of protection against extra costs. If a rental machine requires an unplanned visit to the service shop, a trusted equipment dealer can find a replacement within days instead of weeks. 

When contractors own a large fleet, they’ll hire knowledgeable fleet managers to integrate a parts and service schedule, ensuring machines are ready when needed. However, experienced managers are hard to find during the continued labor challenge, so finding a partner to help monitor machines…is an attractive option. Some dealerships…ensure that any machine in their rental fleet is under a warranty program. RDO’s Connected Support team works…to remotely monitor rental machines so technicians can be dispatched to jobsites when any machine needs attention. 

Options Please

Given the bad news/good news that our infrastructure work is nowhere near done, contractors with a growth mindset know that operational flexibility is essential. Toward this end, wisely choosing rental partners can make a huge difference. For example, Rental Purchase Options (RPOs), as well as opportunities to try out a variety of attachments and technological solutions, give contractors lots of agility toward building the business:

RPOs may attract contractors building their business as they experience different revenue streams trickling in slower than expected. For example, government funding, like Infrastructure Investment and Jobs Act grants, is slowly distributed. Additionally, these funds will have less impact on the current fiscal year’s bottom line due to increased costs. With less profit expected for this fiscal year, many contractors want flexibility in their purchasing options.

Rental equipment offers the chance to gain experience with not just the machine but a wide variety of attachments and technology, too, without making a huge financial commitment. Excavators are a great example….John Deere’s excavators can be fitted with versatile attachments like a grapple or thumb, providing versatile gripping and lifting capabilities. Such attachments can broaden the use case for a rented machine, which can give you a good picture of the different options available to meet the demands of your jobsite. The same idea applies to technology….

Summing up the competitive advantages of equipment rental, Alise Moncure, the chief executive officer of Integrated Rental, a heavy equipment rental software company, observes: “When contractors rent equipment, they can be more confident when bidding on jobs, knowing their equipment expenses and having no maintenance surprises….Renting equipment continues to become a more attractive option to allow contractors to be more flexible with their work….” When it comes to ease, speed, and agility in running the business, remember, Colonial Surety is here to help too. Receive free business credit scores instantly, just for submitting our simple Pre-Qual for a surety line of credit–in writing. Upon approval, you’ll always have an edge with these significant contractor advantages:


  • Written Bonding Limits: Receive your single and aggregate bonding limits in writing.
  • Instant Bid Bond Issuance: Gain the ability to issue your own bid bonds within minutes, using our power of attorney.
  • Real-Time Visibility: Log in anytime to your private dashboard to view your underwriting profile and insightful financial data in real-time.



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Founded in 1930, Colonial Surety Company is a leading direct seller and writer of surety bonds and insurance products across the USA. Colonial is rated “A Excellent” by A.M. Best Company and U.S. Treasury listed. Let’s connect today: Colonial Surety.