Kevin Gardner, commercial manager at BPI Asset Disposal Solutions, looks at how to get the best deal for equipment you no longer need.
The construction industry is a key driver of economic growth and infrastructure development in the UK. As construction projects progress, assets such as machinery, equipment, vehicles and tools play a vital role in ensuring overall success. However, at the end of their useful life or when they are no longer needed, these assets need to be disposed of properly.
Efficient asset disposal is essential not only from an environmental perspective but also to maximise value and minimise costs for construction companies. However, the process has unique challenges due to the nature of the assets involved, regulatory requirements, and the need for sustainability. This is where commercial asset disposal specialists come into play.
Effective asset management is a critical element of running a successful construction or plant hire business. It involves monitoring, maintaining, and optimising the value of assets throughout their lifecycle.
Working with an asset disposal specialist who has knowledge and experience in the construction and hire industries means that accurate valuations can take place to ensure businesses receive maximum returns. Partnering with asset disposal specialists can also help manage inventory as they work as an extension of your team, guiding you on when is the best time to sell a particular group of assets.
There are practical considerations, too – asset disposal is an efficient and fast way of creating space and generating capital – cash is still king.
Challenges
Asset disposal in the construction sector presents several challenges that are best navigated using a disposal specialist.
These challenges are centred around the construction sector being characterised by a wide variety of assets, each with different specifications, conditions, and values. Identifying and evaluating all these assets can be a complex and time-consuming process, requiring expertise and experience in asset appraisal and valuation.
Inaccurate asset identification and evaluation can lead to financial losses or missed opportunities for value realisation. It’s one of the reasons why businesses in the sector with large numbers of assets often hand the process to specialist asset disposal companies that can complete the work on their behalf.
Utilising an asset disposal specialist conveys other benefits, too. Construction projects often have strict timelines and resource constraints, which makes disposing of assets in a timely manner challenging, especially when juggling multiple projects. Co-ordinating asset disposal, managing logistics and ensuring compliance while minimising disruption to ongoing projects therefore requires careful planning and execution and this a crucial area where a specialist adds value.
Specialists can accurately appraise the asset based on market conditions, specifications, and age. This expertise ensures that companies receive fair value for their assets during the disposal process.
Reputable asset disposal specialists have established networks of potential buyers and investors in the construction industry. These connect companies with potential buyers who are specifically interested in these kinds of assets. Access to a wide range of potential buyers obviously increases the chances of achieving a competitive price.
An effective specialist should always advise businesses to regularly assess condition and performance because it helps them determine if they are ready for disposal. This also helps companies to identify assets that may be underutilised, or no longer aligned with business needs. Regular reviews enable proactive decision-making regarding asset disposal, replacement, and upgrade.
Auctions are a common route to market for asset disposal in the construction sector and most commercial asset disposal specialists have well-established platforms in place. This route includes cataloguing, marketing, bidding, and post-sale processes, ensuring a smooth and hassle-free disposal experience. Online auctions also have the benefit of being open 24/7, with options to set reserves and access a global audience.
High standards are vital in any industry, including asset disposal and is the reason why we are guided by ISO best practice as a way to standardise and regulate our processes, and ensure transparency for customers.
Compliance
As businesses look to improve their sustainability credentials, many may not realise that disposing of these unwanted assets can promote environmental sustainability by giving unwanted equipment a second lease of life. This reduces waste and the carbon footprint associated with manufacturing new equipment.
It is a fact not lost on many that demonstrating this kind of environmental responsibility can enhance your company’s reputation and attract eco-conscious customers and partners.
The way forward
Effective asset disposal in the construction sector is crucial for maximising value, minimising environmental impact and ensuring a healthy cashflow. Working with a commercial asset disposal specialist is one of the best ways of accessing these benefits, whilst at the same time streamlining the disposal process.
For many construction companies, being able to hand this to an asset disposal specialist allows them to concentrate on what they do best – delivering successful construction projects on time and in budget.
More information on BPI Asset Disposal Solution
