Over the past few years, Bill Dunn Jr. has been pushing Kansas City, Mo.-based J.E. Dunn Construction to tighten up asset-management controls for its $50-million fleet of construction equipment. As with most other firms, the primary objective is improving jobsite safety and equipment availability. But Dunn says carefully planned buying, leasing, renting, preventive maintenance and sale of equipment also help the general contractor reduce insurance costs, which have doubled for owners since the economy began cooling off in 2000.
"Deductibles are rising. We need to look at our business the way we look at our own personal insurance," says Dunn, senior vice president of purchasing and warehouse operations. He says J.E. Dunn is overhauling its equipment-management techniques in order to offset costly insurance premiums.