Plant Hire 101 What You Need to Know About a Plant Hire Contract
Every time you hire equipment for a project, it is good business practice to have a rental agreement or contract. A contract lays down the details of your liability and its limits, and it also protects both parties. The primary inclusions in a plant hire contract include the following:
- Equipment owner and borrower’s complete name and address
- A detailed description of the rented equipment
- The total cost of renting the equipment
- The inclusive period for the rental
- Details about fees for returning the equipment late
- Record of security deposit made by the borrower
- Expected date of equipment delivery
- Rental location
- Full value of the equipment
- A clause for agreement severance
- General conditions and terms
- Laws governing the rental agreement
The rental contract may also include any other relevant information pertaining to the deal.
When is it necessary to draw up a rental agreement?
Hiring heavy equipment for large construction is a common practice for contractors. If you are in the Lincoln area, and are looking for crane hire, Lincoln plant hire companies can supply machinery for any upcoming project, it is essential that you have a rental agreement from the plant hire company.
Through a rental contract, you can define detailed terms and conditions such as:
- The manner in which the equipment will be used.
- Parties responsible for repairs in case of damage.
- Will the plant hire company require insurance for damage?
- How much interest applies to any outstanding balance on the payment?
- Do you have the option to buy the equipment after the rental period?
Some rental companies allow renters to buy the equipment after rental. This is an excellent option if your company is considering acquiring a fleet of machinery for future projects. A rental contract also includes an additional clause on identifying which party pays for taxes, supplies like fuel, logistics charges, and rental insurance if applicable.
Additional documents included in the rental contract
When you sign an agreement with the rental company, you typically need to add other documents. Some examples include a bill of sale, a detailed list of rented equipment, and serial numbers of each piece of machinery.
Specific sections in a rental agreement
This depends on what the rental company and the renter would like to include in the contract. It would typically include an opening statement and other clauses such as:
- A section stating that the renter cannot make any modifications to the equipment.
- A provision regarding options for renewing the contract or buying out the machine if applicable.
- A clause on the liability limitation of the renter.
- Detailed information on contract severability.
- A section for signatures, witnesses, and the date of the agreement.
These are only a few examples of what you can find in a rental contract. Note that a rental agreement is an extensive document which also outlines some legal clauses that describe the responsibility and liabilities of each party. If you need any assistance with drawing up a rental agreement or contract, you can always seek the help of your company’s legal counsel, who can help with some of the complicated details and terminologies included in the contract.
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