Rental Equipment Management:

Purpose:

Equipment assigned for rent (rented-out) should be managed both at head office and project level
starting from owning the equipment, the rent process, delivery to lessee site, operation at site and
back to lesser location. The management should be performed efficiently in order to

- Succeed return on investment as planned

- Keep the machine safe, available and prolong service life
- Maximize utilization and production
- Satisfy the customer

Process:

 Own the equipment

 Identify the market
 Finalize rent process
 Assign and mobilize
 Operation and performance follow up
 Service and Maintenance
 Contract management
 Follow up production
 Collect payment
 Terminate the agreement
 Demobilize
 Perform major inspection and maintenance
 Report preparation

Detail Considerations:

Manpower, namely Rental Officer, should be assigned for rental equipment operation and
management.

- He will be the direct responsible person.

- Operator/Driver and assistants are responsible for thorough follow up during
operation.

 Own the equipment

- New equipment purchase or
- Plan from maintenance
 Identify the market, lessor and project status
- Check lessor company status
- Primarily rent payment settlement status
- Project site security: Ensure risk level is minimum
- Distance from Addis Ababa
- Type of project: Road, Water work, Farm, …
- Project duration
 - Duration for current rent demand
- Minimum working hour per day

 Finalize rent process

- Preparation and approval of contract document
- Advance amount and collection
- Mode of next payment
- Detail of Lessor duty and responsibility
- Detail of Lessee duty and responsibility
- General conditions
- Disagreement settlement

 Assign and mobilize

- Mode of mobilization: to site and back to lessor location
- Mobilization cost: Delivery to site and Return
- Number of days to deliver at site
- Insurance for mobilization
 Operation and performance follow up
- Operator/Driver
 Assigned activity: Check and report
 Timesheet recording follow up
 Daily worked hour reporting
 Underutilization report
 Authorized timesheet copy collection
 Keep operation efficiency
 Follow safety precautions: no accident operation
 Control overloading
 Resistance to unmatched activity assignment
 Resistance to un-serviced machine operation
 Resistance to site change prior to lessor approval
 Tire consumption report: abnormal wear due to site condition
 Fuel consumption follow up
 Accident report
- Supervisor:
 Periodic site visiting
- Insurance status
 Property
 Third party
 Violence
 Service and Maintenance
- Operator/Driver
 Service follow up
 Daily inspection
 Scheduled maintenance
 New symptom recognition and reporting
 Breakdown report

 Contract management
- Assigned location: Ensure assigned as per the agreement
- Date activity started after site arrival
- Follow up availability
- Follow up daily worked hours
 Check underutilization or overutilization
- Request payment as per the agreement
- Check unpaid amount against total worked hour
- Report to top management if payment is not effected as per the agreement

 Follow up production
 Terminate the agreement
- Collect termination letter
 Demobilize
- Considering the transport cost per the contract
- It should be as short as possible
 Perform major inspection and maintenance
- As required
- It should be done before next assignment
 Report preparation
- Availability, Utilization and production
- Service and Maintenance Cost Summery
- Fuel and Other material costs
- Accident
- Rental Income
- Profit and Loss