Hire Terms and Conditions
There are two main types of conditions used by hire companies when hiring plant and equipment. Contractors Plant Association (CPA) and Hire Association of Europe (HAE) Conditions. The type of equipment rented would usually dictate the conditions that the hire company use. CPA Conditions are traditionally used by Companies hiring large plant items such as large excavators and dumpers, whereas the HAE Conditions are usually used by companies hiring tools and small plant up to mini digger size. The conditions used outline the customer’s and hire companies’ responsibilities and the penalties in the event that these responsibilities are not upheld. This includes your responsibility for loss or damage of the hired goods.
We have looked at both the CPA and HAE conditions and will outline below of your responsibility for loss or damage for each of these conditions and how the cover provided by the Insurance4plant.co.uk short term hire facility will meet these:
HAE conditions for the sale of goods to consumers and business
Under Clause 9. Loss or Damage to the Hired Goods, the customer is liable for the repair of the hired goods if damaged and if lost or stolen beyond economic repair during the hire period. The customer will replace the hire goods if the goods are less than 12 months old and if older than 12 months will reimburse for any loss or costs suffered as a result of such damage. Insurance4plant.co.uk provides ‘Reinstatement’ cover for plant for up to 24 months and therefore, provides adequate cover in respect of this requirement.
The customer is liable to pay any rental for the hired goods up to and including the date notified that the hired goods had been lost, stolen or damaged. This expense will be paid by the customer, as this is prior to the loss or damage. Furthermore, the customers is responsible for paying two thirds of the rental that would have applied for such goods during the lost rental period until the date that the customer makes payment to the supplier for replacement goods. This element is known as ‘Continuing Hire Charges’ and are covered by the Insurance4plant.co.uk policy up to a maximum limit of £5,000. It is imperative that the claim is reported to insurers immediately that you are aware, and co-operation is provided to the insurer to ensure that the claim is settled as soon as possible and the costs are kept to minimum. You have a responsibility to mitigate all costs and any delay with reporting or lack of co-operation could impact on the insurers decision to indemnify this element of the claim.
CPA (Construction Plant-Hire Association) Conditions 2011
There are two separate forms of CPA conditions used when hiring equipment and the conditions used are dependent on the type of customer. These are the Consumer and Non-Consumer Conditions, with Consumer being considered an individual who is hiring the equipment for private and non-commercial use.
CPA Model Conditions for the hiring of plant (2011)
The most common form of the conditions being used are CPA Conditions for the hiring of plant (2011). These Conditions are the non-consumer conditions aimed at business customers and set out the customers responsibility for insurance under Clause 13. Which states that the Customer is responsible for Loss and Damage. The condition states that the Customer must ‘make good’ to the owner all loss or damage to the plant caused with the exception of fair wear and tear. There is no requirement for replacement and indemnity cover is, therefore, sufficient. Insurance4plant.co.uk does provide replacement for up to 24 months and indemnity thereafter and therefore, adequately provides the protection that you need.
Under the non-consumer conditions hire charges shall be continued at idle time rates until settlement has been agreed. Payment must then be paid within 21 days of the agreed settlement and if payment is not received within 21 days the idle time charges will be reinstated. Idle time rates are two thirds of the agreed hire rate.
CPA 2011 Hire Contract Terms and Conditions for Consumers for Plant and Equipment
As with the non-consumer conditions, Clause 5. Loss, Theft, Or Damage to the Plant and Equipment, makes you liable for the full cost of repairing or replacing the Plant and Equipment whilst in your care. It does, however, give you the option of paying a ‘waiver fee’ and in the event that this option is taken then the hire companies own insurers will reimburse them for the loss, however, you are still liable in the event that the insurers do not reimburse the hire company. Given the fact that you are at the mercy of the hire companies insurers we would recommend that you purchase your own insurance cover via insurance4plant.co.uk rather than using the waiver option.
Unlike the non-consumer conditions, you are not responsible for continuing hire charges.
Both CPA conditions require the notification of accidents within 24 hours by telephone and written confirmation.
It is important that you know which conditions are being used for your hire to ensure that they are appropriate to you. Some hire companies may use their own conditions and it is important that you read through these to ensure that the cover purchased meets the requirements.
The full wording of the clauses relating to your responsibility for loss or damage under the HAE & CPA Conditions are as follows:
HAE Conditions
9 Loss or Damage to The Hired Goods
9.1 If the Hire Goods are returned in damaged, unclean and/or defective state except where due to fair wear and tear and/or an inherent fault in the Hire Goods, the Customer shall be liable to pay the Supplier for the cost of any repair and/or cleaning required to return the Hire Goods to a condition fit for re-hire and to pay the Rental, in accordance with the provisions of clause 8.3, until such repairs and/or cleaning have been completed.
9.2 In respect of any Hire Goods which are lost, stolen or damaged beyond economic repair during the Hire Period the Customer will:-
9.2.1 pay to the Supplier the new replacement cost for any Hire Goods less than twelve (12) months old from first registration; and/or
9.2.2 reimburse the Supplier for any loss or costs suffered or incurred by the Supplier for any Hire Goods more than twelve (12) months old from first registration, less the amount paid to the Supplier under any policy of insurance and/or Deposit in respect of the Hire Goods.
9.3 The Customer shall remain liable to pay the Rental for the Hire Goods up to and including the date it notifies the Supplier that the Hire Goods have been lost, stolen and/or damaged beyond economic repair.
9.4 In addition to the obligation in clause 9.3 to pay the Rental, from the date the Customer notifies the Supplier that the Hire Goods have been lost, stolen and/or damaged beyond economic repair until the date the Customer makes a payment to the Supplier for the replacement of the Hire Goods in accordance with clause 9.2 (“Lost Rental Period”), the Customer shall pay, as a genuine pre-estimate of lost rental profit, a sum as liquidated damages being equal to two thirds of the Rental that would have applied for such Hire Goods during the Lost Rental Period. The Supplier shall use its reasonable commercial endeavours to purchase replacements for such Hire Goods as quickly as possible once it has received payment from the Customer under clause 9.2 above.
8.3 The Supplier will at its own cost carry out all routine maintenance and repairs to the Hire Goods during the Hire Period and all repairs which are required due to fair wear and tear and/or an inherent fault in the Hire Goods. The Customer will be responsible for the cost of all repairs necessary to Hire Goods during the Hire Period which arise otherwise than as a result of fair wear and tear, an inherent fault and/or the negligence of the Supplier while carrying out routine maintenance and/or repairs.
CPA Model Conditions for the Hiring of Plant (2011)
13. Hirer’s responsibility for loss and damage
(a) For the avoidance of doubt it is hereby declared and agreed that nothing in this
clause affects the operation of clauses 4, 5, 8 and 9 of these conditions.
(b) For the duration of the Hire Period (which for the avoidance of doubt includes the time Plant is left on site during a Holiday Period) the Hirer shall, subject to the provisions referred to in sub paragraph (a) make good to the Owner all loss of or damage to the Plant from whatever cause the same may arise, fair wear and tear excepted, and except as provided in clause 9 herein, and shall also fully and completely indemnify the Owner and any personnel supplied by the Owner in respect of all claims by any person whatsoever for injury to person or property caused by or in connection with or arising out of the storage, transit, transport, unloading, loading or use of the Plant during the continuance of the Hire Period, and in connection therewith, whether arising under statute or common law. In the event of loss of or damage to the Plant, hire charges shall be continued at idle time rates as defined in clause 25 until the settlement has been agreed. Payment of the settlement must be made within 21 calendar days of the date of the agreement or idle time charges can be reinstated from the date of that agreement. Should idle time charges be re-instated, the agreed settlement figure remains payable in full.
(c) Notwithstanding the above the Hirer shall not be responsible for damage, loss or injury:
(i) prior to delivery of any Plant to the site (or, where the site is not immediately adjacent to a highway maintainable at the public expense, prior to its leaving such highway) where the Plant is in transit by transport of the Owner or as otherwise arranged by the Owner,
(ii) during the erection and / or dismantling of any Plant where such Plant requires to be completely erected / dismantled on site, provided always that such erection / dismantling is under the exclusive control of the Owner or his agent,
(iii) after the Plant has been removed from the site and is in transit on a highway maintainable at the public expense (or where the site is not immediately adjacent to a highway maintainable at the public expense after it has joined such highway) to the Owner by transport of the Owner or as otherwise arranged by the Owner,
(iv) where the Plant is travelling to or from a site on a highway maintainable at the public expense (or, where the site is not immediately adjacent to a highway maintainable at the public expense, prior to its leaving or after its joining such highway) under its own power with a driver supplied by the Owner.
CPA 2011 Hire Contract Terms and Conditions for Consumers for Plant and Equipment
5 Loss, theft of, or damage to the plant and equipment
5.1 Subject to clause 5.3 below, if the Plant and Equipment is lost, damaged, destroyed or stolen whilst in your care,
5.2 We may take out insurance to cover the risk to our Plant and Equipment. If we do so and you pay the Waiver Fee, we will not pursue you for the costs of repairing or replacing the Plant and Equipment, but only to the extent that such costs are reimbursed to us by our insurers. You will still be liable to us, however, to the extent that the insurers do not reimburse us for the loss or damage. You must take reasonable care of the Plant and Equipment whilst it is in your custody, even if the Waiver Fee has been paid.
5.3 You will not be liable to pay us for any damage caused to the Plant and Equipment arising from any defect in the Plant and Equipment which was not apparent when it was hired to you. You will not be liable for any loss or theft of the Plant and Equipment resulting from a fault in the Plant and Equipment’s security system which occurred before you took delivery of the Plant and Equipment. You must notify us immediately if there is a fault with the Plant and Equipment’s security system, including but not limited to faulty locks or other security devices.
5.4 Where the Plant and Equipment or any part of it is lost, stolen, damaged or destroyed you must notify us immediately in order that we can notify our insurers. If the insurers refuse to pay us because of a delay in notification by you, you will be liable to us for what would have been recovered from the insurers if you had complied with this clause. You must provide our insurers and us with all reasonable assistance when so requested.
5.5 You must notify the police immediately if the Plant and Equipment, or any part of it, is stolen or has been criminally damaged.
If you have any doubt about the adequacy of your insurance cover then please do not hesitate to contact us and one of our hire industry experts will be happy to assist.