Plant hire is a widely recognised practice in the construction industry because of its many benefits. Contractors that are working on large projects rely on high-quality heavy equipment provided by plant hire companies. In the past several years, the plant hire industry has enjoyed a steady growth because of the demand coming from residential and commercial construction. In addition to construction, plant hire is also an essential resource for the manufacturing and mining industry. Some of the benefits include:
- Cutting the cost of purchasing, maintaining, and storing heavy equipment
- Renting equipment may qualify for tax breaks and credits
- The rental company usually takes care of transport, repairs, and maintenance
- Leasing can help increase profit margins by reducing labour costs
- Availability of high-quality and advanced machines
Plant hire is instrumental in the success of construction companies and will be for many years to come.
What to expect from plant hire services
Many contractors have an impression that renting equipment from any Plant Hire Birmingham company is the same. However, terms and conditions may vary depending on several factors. Although there is an industry standard when it comes to regulations that rental firms follow, it is crucial to understand the individual conditions that apply when hiring a piece of machinery.
The importance of CPA conditions
The most widely accepted and applied agreements used in the plant hire industry are under the CPA conditions, which have been around since 1941. CPA stands for Construction Plant-Hire Association, and renters need to understand the specific requirements when you hire construction equipment that is a CPA hire. For example, there is a clause in CPA conditions that indicates the rental company is liable for injury and damages caused by the machine, especially if it was rented out, including an operator.
By making sure that the rental company employs robust processes in setting the terms and conditions of each plant hire, both the firm and renter have adequate protection, and available legal remedies should any problems ensue.
Essential inclusions in a plant hire contract
Every rental company uses a different format for the plant hire agreements, but the content should be mostly the same. There are crucial elements that need to be included, such as:
- Definition and interpretation of terms
- Specific details about the rental condition
- Fees, payments, and other charges
- Agreement on delivery and return
- Termination of contract
- General liability and indemnity
- What to do in case of equipment theft
- Maintenance and care of the equipment
- What to do in case of force majeure
- Company contact information
- Hired personnel information
- Other governing laws and regulations
There are other sections which may be included in the rental terms and conditions such as a privacy clause and procedure on how to handle complaints. Anytime a contractor is hiring equipment from a rental company, going through every part of the contract is crucial. That is why a solicitor is often present, especially if it involves a big contract for an extended time. Scrutinising the terms and conditions will not only lay the foundation of your professional relationship with the rental company but also serve as your protection.