What is meant by "equipment leasing" in construction?

Equipment leasing in construction refers to the practice of renting construction machinery or equipment rather than purchasing it outright. This approach allows construction companies to access the necessary machinery for specific projects without the significant upfront costs associated with purchasing new equipment. Leasing can provide flexibility and reduce financial risk, as companies can choose to lease only the equipment they need for the duration of a project.

This method is particularly advantageous for companies that may not have the capital to buy expensive machinery or for those that do not require heavy machinery for long periods. Leasing also often includes maintenance and support from the leasing company, further alleviating the burden on the construction firm.

By contrast, purchasing machinery would imply ownership and typically involves higher initial investment costs, while long-term investment in machinery refers more to commitments for buying and owning rather than periodic rentals. Bartering machinery would involve exchanges rather than a financial transaction, which is also not aligned with traditional leasing practices.