Construction and Infrastructure Lifting Solutions for Funding Freezes

Amidst funding freezes, LGH is your trusted partner to find lift solutions for any unforeseen changes.

 

Imagine this: your lift plan got the green light, lifting and rigging equipment is mobilized, the crew is hard at work—then funding freezes.

You may not have to stretch your imagination far, especially if this is a headache you are all too familiar with.

Several construction and infrastructure projects are being impacted by funding freezes, according to Jason Rios, LGH Regional Rental Manager for the North East.

“Jobs keep starting and getting stopped because the government can’t decide if they are funding them or not,” Jason reports. “Rental is a great option because [contractors] don’t have to pay for the equipment while they are not using it, the job pauses, etc., but can easily be redeployed when the job is.”

Grant delays, policy changes, and government shutdowns are all reasons why federal funding might be paused. Such delays can happen at any point in the project. What LGH reps are seeing is the impact of this mid-project, not just at the planning stages.

From railway maintenance and bridge repair to wind and solar farm installations, LGH works with contractors across North America to pivot when federal funding becomes uncertain.

 

Key Industries Impacted by Federal Funding

The main industries seeing pauses or cancellations include the following. This also includes projects funded by federal grants.

Public Infrastructure & Transportation

• Bridge construction and maintenance
• Roadway and highway projects
• Rail and transit construction
• Tunnel construction
• Water infrastructure and dredging

Energy & Utilities

• Wind farm installations
• Solar farm construction

Overall, any federally funded or grant-backed project carries similar risks. The effect of these interruptions on infrastructure and energy projects can really rack up expenses.

 

The Hidden Costs of Project Pauses and Shutdowns

Construction and infrastructure projects that encounter funding freezes face unforeseen challenges and costs that were not budgeted for. Here are the most common issues that contractors could be up against.

• Stranded capital: Owned equipment that still needs to be paid off while not in use, or once funding comes in.
• Ongoing carrying costs: Insurance, maintenance, recertification, storage, and jobsite security for idle equipment.
• Reduced flexibility: Purchased equipment may no longer fit the revised scope or lacks the flexibility needed to perform certain lifts.
• End-of-project waste: Contractors may end up scrapping their purchased rigging equipment due to the cost of recertification, repair, or storage.

Rather than end up with wasted equipment and stranded assets, LGH offers flexibility and adaptability for projects with financial uncertainty.

 

Five Key Benefits of Renting Lifting & Rigging Equipment

With federal funding being uncertain across several sectors, renting equipment provides many advantages.

1. LGH eliminates sunk costs by allowing contractors to return lifting and rigging equipment to us. This way, they don’t have to store or maintain lifting and rigging equipment themselves.
2. LGH can provide more precise equipment as the scope of work changes, grows, or shrinks. For example, a heavy-duty spreader beam acquired for an earlier phase of the project may be too large for later phases. Operating space could become scarcer and may require smaller, more specialized, or dialed-in equipment.
3. The transfer of some administrative and compliance issues. With LGH handling the certification, when a project remobilizes, the contractor will know that the equipment they need is up to date and compliant, as well as serviced and tested per ASME/OSHA requirements.
4. LGH provides contractors with both financial and operational flexibility. This is helpful for contingency-based construction schedules. Start dates can change based on delivery. They can also change based on other phases before the lift.
5. Renting lifting equipment makes use of operational budgets rather than capital expenditures. This often helps the balance sheets of contractors on projects with tight funding.

 

LGH supports risk mitigation because we are a technical partner for our equipment. In addition to providing lift planning services, each LGH rep provides technical knowledge and expertise.

With LGH as your partner, you can trust that our reps will work with you to find the best solution for your lift.

---

ABOUT LGH

LGH is North America’s largest single organization devoted exclusively to the provision of lifting and moving equipment for rent. LGH holds the most comprehensive inventory for hoisting, rigging, jacking, pulling, material handling, and safety equipment. With over 90,000 pieces of equipment, discover your next project solution at RentLGH.com.