Mobile plant for hire: what you need to know

The yellow experts at NTI explore the key considerations when hiring out Mobile Plant and Equipment (MPE), and explain why it's important to understand what you are doing when it comes to hire arrangements and insurance.

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As the cost of doing business continues to be top of mind in the current economic climate, it presents a two-way opportunity for those seeking to contain costs by hiring equipment, and businesses seeking to make the most of their investments by hiring them for use. So, where to for help?

Obtain quality legal advice

Hire agreements are central to any hire business and a critical risk management tool. Engage a lawyer experienced in preparing hire agreements for the mobile plant industry to draft an agreement tailored to you.

The one-off (and tax deductible) expense is negligible compared to the risk exposure from a contract that's poorly worded or doesn't cover the relevant risks and conditions.

According to NTI's National Strategic Underwriter - MPE Gary Woodhams, this is a critical step.

“Don't take shortcuts — if you don't obtain good legal advice, you open yourself up when things go wrong,” he said.

“Crafting a good quality hire agreement can provide years of contract certainty and clarity of obligations for all parties.

“Conversely, a poorly crafted hire agreement - or one without legal input - invites complications.

“You could experience problems obtaining adequate insurance, conflicts around who is responsible for damage and insurance, accusations of unfair contract terms and delayed or declined insurance claims.”