Gearing Up for Year-End, Part 2: Budgeting and Equipment Acquisition

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With year-end planning in full swing, one of the inescapable must-dos is budgeting for the next year’s projects. In wastewater and stormwater management, this means including pipeline inspection as a line item.

Many municipalities are under consent decrees to lessen or put an end to non-point source pollution, and this necessarily has a massive impact on budgets. While normal budgets are determined by tax revenues, consent decree work budgets are driven by what kind of mandates they have issued. Depending on the specific project, sometimes the federal government will help cities find funding to do what they need to do.

  • If there is a “green” aspect to your project, you may decide to seek funding from an EPA Clean Water Act Nonpoint Source Grant (Section 319 Grants – https://www.epa.gov/nps/319-grant-program-states-and-territories)—Congress amended the Clean Water Act in 1987 to establish EPA’s Section 319 Nonpoint Source Management Program to provide greater federal leadership in focusing state and local nonpoint source efforts. Under Section 319, states, territories, and Indian tribes receive grant money to support a wide variety of activities, including:
    • technical and financial assistance,
    • education and training,
    • technology transfer,
    • demonstration projects, and
    • monitoring to assess the success of projects implemented under the grant.
  • EPA Clean Water State Revolving Fund (CWSRF – https://www.epa.gov/cwsrf)— This program is a federal-state partnership that provides communities a permanent, independent source of low-cost financing for a wide range of water quality infrastructure projects:
    • wastewater treatment
    • stormwater management
    • nonpoint source pollution control
    • watershed and estuary management.
  • Often there are National Pollutant Discharge Elimination (NPDES – https://www.epa.gov/npdes/municipal-sources-resources) funds available, although the research and paperwork can be formidable.
  • You may need to be creative in your approach and the way you view your project, when it comes to identifying potential funding sources. Consider asking your local water district for help. Or you may choose to create your project in such a way that it qualifies for funding from other, less obvious sources.

Equipment Field Demonstrations

If pipeline inspection equipment is on your list of must-buys, first do as much due diligence as possible. Research every possibility online to keep your costs in time and travel to a minimum. You may want to consult our exhaustive Due Diligence series in this blog, starting with the first post (https://www.trio-vision.com/pipeline-inspection-equipment-considerations-what-you-dont-know-can-hurt-you/) and reading through to the end.

One of the important steps in choosing the right equipment for your needs is scheduling a field demonstration, so you can see exactly how it behaves in actual use. Don’t settle for a simple show-and-tell from a sales representative, especially if it’s new equipment you’re not familiar with. You don’t want to see how it performs under optimal conditions, which rarely exist in the field. You want to see how it handles the rigors and unexpected turns of a real job.

Once you’ve scheduled your demonstration, what should you expect?

According to Robert Studdard, our Southeast Regional Sales Manager, “A true demo should consist of an actual pipe inspection in normal working conditions. The pipe should be cleaned prior to inspection. The pipe size being worked on should be known in advance, so the crawler can be properly set up”, he says. “And the customer should understand that there are no ‘bulletproof’ systems on the market: meaning that the condition of the pipe, its lack of maintenance, and other factors can and will affect the way the inspection goes.”

All of these real-world possibilities should be explained by the sales rep, and the customer should be wary of too many promises made with no limitations. In other words, if it sounds too good to be true, it probably is.

The need for realistic expectations extends to the length of the inspection distance coverage. Most manufacturers claim that their equipment will go a thousand feet, and it will. However, just because you can doesn’t mean you should. Most municipalities and counties go manhole to manhole, somewhere between 300-500 feet per run. So make sure you actually need that run length: Bells and whistles on equipment increase its cost, and you don’t want to pay for something you simply don’t need and probably will never use.

You may also wonder what questions you should ask to complete an accurate and in-depth comparison of all potential equipment solutions. We have created a convenient, downloadable checklist for you to use in making these comparisons. It provides a one-stop, go-to document to allow you to ask all the important questions of each manufacturer or rep, so you can then compare apples to apples, so to speak.

Download Demo Comparison Form

Due Diligence: Dealers & Distributors

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In this final entry in our Due Diligence series, we take a look at the importance of dealers and distributors in both the equipment purchase and service processes. Some contractors prefer to buy direct from the factory, and that has its advantages. But over the long haul, many find that developing a relationship with a local or regional dealer or distributor the preferable option. Let’s explore the advantages of that scenario, and the questions you need to be asking to ensure you get the most out of such a relationship:

Consultative Approach

When you deal with the distributor, are they making sure you get into the best unit for your needs, or for their bottom line? This will be apparent in the kinds of questions they ask you. You want to feel that they really understand your needs, by really listening to the answers you give.

Make sure they use a consultative approach to selling. They should be asking as many questions as you are, as you tell them about your equipment feature and performance requirements. It may be that what you think you need and what you actually need are different. Only a seasoned, experienced representative will understand this and be able to ask the right questions to figure that out. Consequently, they can lead you in the right direction toward equipment that will actually help you accomplish your goals in the field.

Know-It-All…Or Not?

If the person you’re speaking with at the dealer or distributor doesn’t seem to know the answer to some of your questions, are they willing to admit this and find out from the right person? Or do they seem more interested in appearing to have all the answers?

You can’t afford to sacrifice getting the right product to their ego or pride. If you don’t feel satisfied with the answers you receive, find a way to politely ask for a second opinion. This purchase is too large and important not to make the right one the first time.

Does Staff Inspire Confidence?

Do a little homework before you even approach the dealer/distributor. Find out if its staff is fairly stable, or if they have high turnover. The latter could indicate a poorly managed company that may not treat its people well. This could mean you may end up dealing with a constantly changing assortment of representatives. Such a situation won’t inspire comfort or confidence in you…and probably shouldn’t. As the customer, you should expect to come first, not behind a line of internal management issues.

After The Sale

Lastly, you’ll want to find out if the distributor has the capacity (and willingness) to provide a reasonable amount of after-sale service. After all, the initial transaction is a one-time thing, but ownership of the product will hopefully go on for quite a few years. You want this extension of the relationship to be convenient and satisfactory, not fraught with stress.

Can the dealer service the equipment nearby, or will they need to send it back to the factory, perhaps far away? The latter doesn’t always mean a bad deal for you: In fact, sometimes factory refurbishment is the best possible option for keeping your equipment operating at peak condition and warranty compliant. But when that happens, does your dealer offer loaner equipment to keep you productive, while yours is in the shop?

How do they handle communications while they have your equipment?

  • Will they be proactive in letting you know when you can come pick it up, or will you have to babysit the process with several phone calls?
  • What’s their track record on delivery as promised? When they say they’ll have it ready, will it be?

Managing your expectations at this point is one of their most important jobs, and you need to know that their information is reliable. Otherwise, frustration can set in, and create a lack of confidence in the dealer. No one wants that. So do your due diligence at this end of the deal, and everyone should end up happy.

We hope you’ve found this Due Diligence series helpful, and that you’ve learned something of value that will help you get a handle on the process, the next time you need to make a major capital investment in your pipeline inspection or other professional equipment.

 

 

 

 

Due Diligence Series #1 - Equipment Considerations

Pipeline Inspection Equipment Considerations: What You Don’t Know CAN Hurt You!

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Welcome to the first post in our Due Diligence series, intended to help you make sure your capital expenditures end up being investments, not expenses.

Let’s face it: Capital expenditures are probably the second most significant line item in your budget, whether you’re a municipality or a contractor. The specialized equipment you use to perform pipeline inspections can represent a good portion of that amount, so doing your due diligence before making such a large purchase can be the determining factor in whether that purchase ends up being a foolish cost or an intelligent investment.

What Do You Really Need?

Equipment considerations: Frigid Northeastern temperatures

The first equipment consideration is to be sure that you understand what it is you’re buying. Be very clear in your mind about what you expect that equipment to do for you. Your expectations must be realistic, of course; no system is perfect or flawless, and never breaks down. All underground and some above-ground environments in which this equipment is used are extremely harsh, and no matter what you buy, it will eventually succumb to wear and tear.

Equipment considerations: Dry cracked earth

The difference is in how long it takes to reach that point, and how repairs are handled when it does. We’ll explore those points later in this series, but at the buying stage, you need to ask yourself some important questions:

Equipment considerations: muggy Florida atmosphere

What special equipment considerations should you make for where you operate?

What are the most important features of the equipment you need?

For example, if you’re located in the Northeast, you must deal with freeze/thaw cycles, and so does your equipment. In the west, seismic conditions can be a test of both man and mechanical items. Extreme heat and dry conditions can be trying in the Southwest, while the muggy, tropical atmosphere of the Southeast can wreak havoc with mostly metal tools.

How Will You Use It?

  • What are the applications in which you’ll be using the equipment?
  • In pipe inspection or cleaning, what diameters and materials are your pipes going to be?
  • Will there be roots and debris?
  • How far from access point to access point?

All these equipment considerations will dictate rubber or friction tires or tracks, the type of lighting you require, and whether or not you can use a camera with an elevator.

If you’re in the market for locators, what type of buried utilities are you trying to find, and how deep do they tend to be buried? How far can the locator signal penetrate, and will it be aided or impeded by the type of soil and ground conditions you will likely be encountering?

While you’re responsible for the purchase decision, you may not be the one who’ll be using the new equipment. If that’s the case, it might be a good idea to consult the person or people who will be using it most often. They’ve likely developed some preferences for the type of machines they want to use, and can justify why. This can be invaluable in making sure you invest in a piece of equipment your crews happily use to help get the job done, rather than a non-starter everyone will avoid.

Share Your Equipment Purchasing Tips

We’re sure you have your own tips for making sure your next equipment buy is successful. We encourage you to share those tips in the comment section here, and on our Facebook page. After all, knowledge is power, and a rising tide lifts all boats. Happy sailing!