What is the best way for a construction company to finance new technology?

Over the past few years it seems like construction pros are using more apps, software, and hardware than ever before. How should a contractor research, evaluate, and implement new digital tools for construction project sites? More importantly, how should a contractor finance the purchase of new technology?

The first option for acquiring new technology is to rent the item. Contractors can rent certain items such as laser scanners, total stations, and other devices directly from local service providers. This is a short term option that allows users to “try it, before buying” without any long term commitments. By using this scenario, a contractor tests out a laser scanner in a real-world scenario to see if there is a positive impact to the current workflow.

The second option for acquiring new technology is to lease the item. Contractors can lease new smartphones, tablets, laptops, and other devices directly from big box stores like Office Depot or local service providers. This is a longer-term option that allows users to “test out” an item with a long term commitment of sorts, generally a purchase at the end of use. 

The third option for acquiring new technology is to purchase the item. Contractors can purchase Drones, VR Headsets, and 360 Cameras or other devices directly from big box stores like Best Buy, online from mega-sites such as Amazon or local service providers. By using this scenario, a contractor would buy a new drone to use on a project and then use it again and again on subsequent projects. After the initial cost is absorbed by a project, the ROI can be recognized on the first few following projects.

Before developing your technology purchase strategy, it may be a good idea to consult with your accounting department or an outside financial source such as a CPA to determine how to best leverage each of these scenarios based upon how your company is structured.