A construction company buys the construction equipments and hires the contractors , how it will work?

Generally the big compnays by the equipment and hire small petty contractors on labour rates.This exercise is carried out to avoid unnecessary labour wastage,now the supervisors just need to provide adequate front ant get the work done in good quality.Such practice is also adopted if the supervisors are not competant to get the work executed in economical manner.

In case if efficient staff is there there is no need to hire contractors for petty work.But now a days efficient & honest supervisors / Engineers are the in endangered  species , can be seen at very rare places.

Well as i understand the question it is regarding eqipment being stipulated for hire in contracts. It will definetly bring down the cost of work as equipment is used economically. Equipment owner can make proper resource planning in such a way so  that equipment is used at different sites as per requirement. For example if design mix concrete is to be provided in four different work packages. Four Batching plants are to be installed and four concrete pumps are to be procured and four transit mixers are to be proucured and if work belongs to one owner it is possible to install one batching plant of bigger capacity.one concrete pump and at the most two transit mixers. By phasing construction all work can be completed in the same period. This way investment on eqipment is reduced and construction cost is reduced. As far NTPC like organisation are concerened equipment is not procured to save capital cost of project as recurring works may not be required to done at same project site and transportation and installation cost is also more of heavy equipment.  Again selection of eqipment will depend upon quatum of work items like eartkwork concreting to be done.

It is a matter which is suitably selected according to the typew of contract,type of construction,and the importance of execution .time frame and profit

All construction is not done same way any professional construction co adapts different methods to achieve the end

i mean by this query that company like Jindal power generally award the total contract of erection and construction to various vendors. the machineries are in their scope. many a times the work suffers in absence of machineries to be brought by these agencies. if jindal keeps the vital construction equipments in site and mention this in the contract in the beginning then the price will be less as well as the work suffering on account of these machines will not happen. But this is not follwed on the owner side. In NTPC also no machinery is kept by the company and work have suffered because of cranes etc. What is the opinion of owner companies in this regards.

Dear Sanjiv, it would be nice if you elaborate the question....

well, the machinary helps the contractor to work at a faster rate... which increases his quantity of work done.....so anyhow he is goin to earn atleast something more.. with the help of machinary.....also the companies alway give the equipment at the rates which are really good.....

I am not sure if the question is with respect to growth or if it will work or not?

For the first one there is a good growth opportunity but it could be slow and steady. For the second case its already working in the market so nothing new

Depends on the skills, experience, attitude,work manner of the contractors.  Almost all construction companies present today have come by this route only. Also depends on the facilites , incentives , labourers and cordination provided by the company.