Last edited 07 Oct 2020

How to manage construction plant


The term ‘plant’ refers to machinery, equipment or apparatus used for an industrial activity. Typically, in construction, ‘plant’ refers to heavy machinery and equipment used during construction works. Many construction companies fail to manage plant efficiently, despite the fact that it represents one of their biggest costs.

Construction plant is generally re-useable, and so, as well as being purchased new, it may be purchased second hand or hired. Rented vehicles tend to be newer, and so better maintained, more reliable, and equipped with more up-to-date features. By renting plant, companies are also able to scale their fleet size up or down relatively flexibly.

For more information, see Plant acquisition.

Accounting software for construction management often features plant management modules. This can enable plant to be assigned efficiently, by listing plant and their relevant details, including availability. Relevant staff are then able to determine the availability of plant at any given time. This is particularly useful for larger companies who may have several projects in progress simultaneously and need to be able to maximise their fleet’s utility.

By using such software to manage plant, it is also possible to monitor variable and fixed costs associated with insurance, storage, operation and depreciation.The actual costs of each contract can be easier to understand if plant costs are automatically associated with the relevant works in the accounts system. Rising costs are also easier to detect and monitor, and can help a company make informed decisions about managing the fleet, i.e. replacing an older vehicle that has had large repair bills.

Maintaining plant effectively and safely is a legal requirement, but it is also beneficial in terms of reducing costs. Management of plant involves identifying hazards for each item and having a plan for how they can be avoided through maintenance and regular inspections.

Accounting software can assist with highlighting the most appropriate time, i.e. during downtime, that an item of plant could undergo maintenance. This is useful in terms of forward planning projects that may need to use the item on-site, and scheduling specialist contractors that may be required for maintenance purposes.

Increasingly, construction companies have been exploring the opportunities of the Internet of Things (IoT) for plant management. For example, Caterpillar have begun manufacturing plant items with sensors and other connected devices, with the aim of establishing completely digitised and data-driven fleets.

Some of the plant management benefits of using IoT include:

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