Buy, rent, or lease (BRL) decision-making of construction equipment in the Dutch construction industry

Abstract

The buy, rent, or lease decision of construction equipment impacts construction companies' project timelines, costs, and efficiency. Acquiring construction equipment causes challenges for Dutch construction companies related to, among other matters, regulations, technological advancements and rising costs. This case study uses interviews with respondents from a construction company to analyse the industry's procurement choices. Key elements in the buy, rent, or lease decision are identified, such as financial stability, technological changes, and maintenance strategies. Several construction equipment selection criteria have been established by this research, such as safety, social benefit, performance, and environmental impact. This study's findings indicate that buying equipment offers savings on long-term costs and allows customisation, renting equipment offers flexibility for short-term needs, and leasing equipment reduces the financial risks of technological obsolescence. The framework of this research contributes to the literature by guiding construction companies in procurement decision-making and aligning financial and sustainability goals.