AGREEMENT TO HIRE

AGREEMENT TO HIRE

The Hirer shall hire the Plant for the Hire Period in consideration of the Rate subject to the terms and conditions attached.

We hereby agree to the terms of this Hire Agreement and acknowledge that the terms and conditions attached shall apply to this Hire Agreement.

TERMS AND CONDITION OF HIRE

1. INTERPRETATION:

1.1 For the purpose of this agreement the following terms have the following meanings:

“Advance Payment” means the first invoice payment which will consist of:
a. an amount which covers the remaining portion of the month from the proposed install date;
b. the next full calendar month’s hire charge; and
c. a deposit (as detailed on the Hire Contract Order Form).

“agreement” means this Hire Contract Order Form which incorporates these terms and conditions of hire.

“Customer Ref” this reference on the Hire Contract Order Form means the Hirer Company Number.

“Delivery Address” means the delivery address stated on the Hire Contract Order Form.

“Excess Rate” means the hourly rate stated on the Hire Contract Order Form which shall be applied to each complete hour for which an item of Plant is used in excess of the Maximum Annual Usage.

“Hire Contract Order Form” means the Owner’s hire contract order form presented to the Hirer.

“Hirer” means the person, limited company, partnership or other legal entity stated on the Hire Contract Order Form.

“Rate” means the sum payable monthly by the Hirer to the Owner in consideration for the hire of the Plant as stated on the Hire Contract Order Form.

“Hire Period” means the period stated on the Hire Contract Order Form (being the Minimum Hire Period) or if the hire period rolls on, the period ending with the date upon which this agreement is terminated in accordance with its terms and conditions.

“Maximum Annual Usage” means the number of hours the Hirer is permitted to run the Plant in each year period without becoming subject to the Excess Rate as set out on the Hire Contract Order Form. The Maximum Annual Usage is stated weekly pro rata as Weekly Duty on the Hire Contract Order Form.

“Minimum Hire Period” means 24 months commencing with the date upon which the Plant is delivered to the Hirer’s Delivery Address unless the Hire Period set out on the Hire Contract Order Form has an end date in which case the Hire Period will become the Minimum Hire Period.

“Owner” means GT Compressors Ltd, a company incorporated in England under number 04201040 whose registered off is at 6-7 Castle Gate, Castle Street, Hertford, Hertfordshire SG14 1HD.

“Plant” means the equipment described on the Hire Contract Order Form .

“Delivery Address” means the location to which the Plant is delivered or taken to at the commencement of the Hire Period stated on the Hire Contract Order Form.

“Insurance Value” means the market replacement cost of the Plant at the date hereof as stated on the Hire Contract Order Form.

2. AGREEMENT TO HIRE

2.1 The Hirer shall hire the Plant for the Hire Period in consideration of the Rate on the terms and conditions hereinafter set out.

2.2 The Minimum Hire Period is the minimum term of hire under this agreement. After the Minimum Hire Period the agreement shall carry on rolling on an annual basis until terminated in accordance with these terms and conditions of hire.

3. PROPERTY

No clause, term or condition of this agreement shall have the effect of transferring to the Hirer property in the Plant which shall at all times remain vested solely in the Owner. The Hirer shall not suffer or permit or cause to be done any act matter or thing which may prejudice the rights of the Owner in the Plant.

4. REPRESENTATIONS & LIMITATIONS

4.1 No employee or agent of the Owner other than the secretary or a director thereof is authorised to make any statements, warranties or representations as to the Plant.

4.2 The Hirer enters into this agreement without relying on any statement, warranty or representation which is not set out in writing and contained in this agreement.

4.3 The Owner cannot guarantee that the Plant hired will meet the Hirer’s requirements and the Owner shall not be liable for any costs incurred due to the Plant not meeting such requirements.

4.4 The Owner cannot guarantee that the Plant hired will not break down during the Hire Period and the Owner shall not be liable for any costs incurred due to the Plant breaking down during the Hire Period.

4.5 The Owner cannot guarantee a response time in the event that the Plant hired breaks down during the Hire Period and the Owner shall not be liable for any costs incurred due to the same. The Owner shall use reasonable endeavours to attend the Delivery Address within 16 working hours of a report of such a breakdown being reported to it by the Hirer, to carry out any repairs and or servicing to the Plant required as a result of such a breakdown. It is highly recommended that the Hirer also hires a back-up compressor to avoid potential downtime should the main hire compressor become subject to a breakdown.

4.6 The Owner shall not be responsible for supplying a written scheme of examination per the Pressure Systems Safety Regulations 2000. This is the responsibility of the Hirer. The Owner shall not be liable for any costs and or fines incurred by the Hirer due to the same. The Hirer will not use, or allow to be used a pressure system, or any part of that system without obtaining a Written Scheme of Examination before the System is used or operated for the first time or the interval for periodic examinations or inspections has expired.

4.7 Unless expressly agreed upon in writing by the Owner, the Plant will not be tailored to produce air of any quality, specification or class other than that outlined in the quotation. Whilst the Owner may install hire plant which it deems appropriate to meet the air quality, specification or class outlined in the quotation, or expressly agreed upon in writing by the Owner, it is the responsibility of the Hirer alone to ensure appropriate control measures are in place to monitor the quality, specification or class of compressed air produced and to inform the Owner immediately if it is not achieved.

4.8 The Owner cannot guarantee the quality, specification or class of compressed air produced by the Plant at any time during the Hire Period and the Owner shall not be liable for any loss or costs incurred due to the failure of the Plant to produce air of any quality, specification or class.

4.9 The Owner can only influence the air quality, specification or class of compressed air being generated by the Plant and it is the responsibility of the Hirer to ensure that the environment and compressed air distribution network are suitable to maintaining the quality, specification or class of compressed air at point of use.

5. CONDITION OF PLANT

The Hirer acknowledges that on the date of delivery of the Plant to the Delivery Address it is in clean and working condition and is suitable for the purpose for which it is intended. To the extent it is not, the Hirer has 12 hours from delivery of the Plant to Delivery Address to inform the Owner that it is not.

6. DELIVERY INSTALLATION, COMMISSIONING AND COLLECTION

6.1 At the request of the Hirer, and subject always to the Owner’s absolute discretion, the Owner may agree to deliver, install, commission and/or collect the Plant for and on behalf of the Hirer.

6.2 If clause 6.1 applies, the Hirer shall pay to the Owner a delivery, commissioning or collection fee (as may be applicable) in accordance with the Owner’s standard rates (a copy of the current rates being attached as Annex 1) or as stated in the Hire Contract Order Form.

6.3 If clause 6.1 applies the Hirer shall be responsible for loading, unloading and/or making available for collection the Plant onto or from any means of transport provided by the Owner and placed into position ready for installation at the Delivery Address.

6.4 At all times between the actual removal from and return to the Owner’s premises, the Hirer shall remain responsible for the Plant.

6.5 If the Owner is to deliver and or install and or commission the Plant at the Delivery Address pursuant to clause 6.1 above, then the Owner shall use its reasonable endeavours to meet any deadline of the Hirer, but time shall not be of the essence of the contract and the Owner shall not be responsible for any losses suffered by the fact the Owner fails to meet such deadline.

6.6 If it becomes clear that the Owner will be unable to meet a scheduled delivery or installation day or time, they will inform the Hirer as soon as is reasonably practical and provide an alternative delivery or installation day.

6.7 Prior to installation the Hirer may be required to prepare the proposed Delivery Address location in accordance with instructions and requirements of the Owner including but not limited to the installation of electrical supplies which meet the minimum electrical requirements outlined in the Owner’s quotation. In the event that the Delivery Address location is not adequately prepared the installation may be delayed or postponed until such time as the requirements are met. The Owner reserves the right to make additional charges in respect of transportation, manpower, administration and any other costs or losses incurred for a rescheduling of the installation.

7. INSURANCE

7.1 The Hirer shall obtain and pay for valid and effective insurance cover for:
(a) the Value of the Plant against any loss or damage which may be caused howsoever to the Plant during the Hire Period; and

(b) any injury, loss or damage, consequential or otherwise, which may be caused to any third party by the Hirer, his servants or agents or howsoever in connection with the use of the Plant during the Hire Period and provide a copy thereof to the Owner on request.

8. MOVEMENT OF PLANT & REPLACEMENT PLANT

8.1 The Hirer shall not move the Plant or cause it to be moved howsoever from the Delivery Address without first notifying the Owner in writing and obtaining the Owner’s written consent, such consent not to be unreasonably withheld.

8.2 If the Owner gives such consent as aforesaid, the Plant shall only be moved by the Owner, its servants or agents, to whom all such access as is reasonably necessary for such purpose shall be given by the Hirer.

8.3 If the Owner moves the Plant pursuant to clause 8.2 the Hirer shall pay to the Owner a movement fee in accordance with the Owners standard rates therefore from time to time (a copy of the current rates being attached as Annex 1).

8.4 If the Owner replaces any of the Plant with equivalent Plant then this agreement shall continue in respect of such replacement Plant as well as any original Plant remaining on Delivery Address.

9. HIRER’S OBLIGATIONS

9.1 The Hirer shall meet all fees and charges that become payable under this agreement on or before the due dates.

9.2 It is the Hirer’s responsibility to ensure the Plant is operated in a suitable environment free of dust, debris, chemicals, vapours, toxins, harmful gases, solvents, adhesives paint etc that can damage the hire plant or cause a health and safety hazard or risk. The Owner shall charge the Hirer for the cost to repair or replacement of the Plant for any damages caused to the Plant due to the Hirer’s negligence in this respect in ensuring the Plant is kept clean and in an environment free of such substances. The hire Plant shall at all times be kept free from obstructions, allowing at least 1500mm access around all of the hire Plant. At no point should any materials, under any circumstance, be placed or stored upon or leant against any of the hire Plant.

9.3 The Hirer shall ensure all Plant is operated in accordance with its manufacturer’s instructions and recommendations and safely in accordance with best industry practice.

9.4 The Hirer shall ensure that the Plant shall be operated safely and without risk to the health and safety of others and will comply, in all respects with regulations controlling health and safety at work.

9.5 The Hirer shall have sole responsibility to ensure the equipment, system and any tools or plant operated by the compressed air is done so in accordance and in compliance with all relevant legislation, regulations, regulatory/industry guidance and instructions provided by the Owner and the Hirer will provide information and training to all of its employees operating the system and or the Plant. In accepting that responsibility the Hirer will indemnify the Owner against any claims, counter claims, enforcement, disputes or defence (including any costs in defending itself or its reputation) brought under any such legislation. The Hirer shall ensure all persons operating the Plant fully understand and observe any regulations, instructions, restrictions and limitations.

9.6 The Hirer shall take all such steps as are necessary, including but not limited to regular lubrication and maintenance of fuel and power supplies, to maintain the Plant in good and proper working order during the Hire Period. The minimum requirements are set out as follows:

9.7 The Hirer shall carry out routine inspections and checks of the Plant as specified by the Owner within the schedule of inspection and maintenance set out in clause 9.6 above or required by law and immediately report to the Owner any signs of damage, wear, malfunction, deterioration or failure.

9.8 The Hirer shall maintain a written record of inspections, to include the name of the person who carried out the inspection, the date and time, and the condition of each item inspected.

9.9 It is the responsibility of the Hirer to carry out the inspections and maintenance as outlined in the manufacturer’s manual supplied to the Hirer on installation. The Hirer must contact the Owner for guidance prior to carrying out the inspections or maintenance if they are unsure of how to complete any of the tasks.

9.10 The Hirer shall reimburse the Owner to make good any damage to the Plant caused other than through fair wear and tear or sustained other than by reasonable use of the Plant for the purpose for which it is intended.

9.11 The Hirer shall not make or permit to be made any alterations, adjustments, modifications, additions or repairs to the equipment (other than anything expressly stated within clauses 9.6 to 9.9 above) by anyone other than a person representing or appointed by or approved by the Owner.

9.12 The Hirer shall give full and unrestricted access to the Plant at all reasonable times.

9.13 If the Hirer unreasonably refuses access to their Delivery Address or the Plant, the Owner may:
(a) recover any costs incurred for travel, time or manpower as a result of not being granted access to the Delivery Address or Plant;
(b) withdraw its breakdown service until access has been provided; any breakdowns which occur during any period where breakdown service is withdrawn shall be chargeable at the prevailing rates;
(c) terminate this agreement.

9.14 The Hirer shall not suffer or permit the Plant to be confiscated, seized or taken out of its possession or control under any distress, execution or other legal process. If the aforementioned occurs then the Hirer shall use its best endeavours to procure the release of the Plant.

9.15 The Hirer understands that unless expressly detailed in writing by the Owner that the compressed air generated by the hire Plant is not suitable for breathing. It is the responsibility of the Hirer to ensure that any compressed air generated by the hire Plant is not used for breathing purposes in any way unless treated sufficiently and legally certified as safe to breathe by meeting the European Standard EN12021: 2014 (as updated and or amended or replaced from time to time), at their own cost prior to use.

9.16 It is the Hirer’s responsibility to ensure that it complies with its own industry specific laws and regulations to ensure that the compressed air generated by the Owner’s Plant is legally safe to be used in the Hirer’s processes and the Owner excludes its liability under any such industry specific laws and regulations to the fullest extent possible.

10. ADVANCE PAYMENT

10.1 Before the start of the Hire Period, and before the Plant is removed from the Owner’s premises, the Hirer shall pay to the Owner the Advance Payment.

10.2 Parts a and b of the definition of Advance Payment shall be credited by the Owner against the remaining portion of the month’s hire from the proposed install date and first full month’s hire. Part c of the definition of Advance Payment shall be held by the Owner until the Plant is returned in accordance with the terms of this agreement as security for the full performance thereof by the Hirer and the Owner may use the balance thereof to pay for the Owner’s collection charges.

10.3 The Advance Payment shall not under any circumstances be treated by the Hirer as discharging any obligation of the Hirer to pay the Rate until the Owner is satisfied that the Hirer has fulfilled all other obligations contained in this agreement.

11. HIRE CHARGE

11.1 The Hirer shall pay to the Owner the Rate each month (plus VAT) in advance in full on the first day of each calendar month by direct debit only and the Owner shall provide a valid VAT invoice via e-mail.

11.2 The Hirer shall pay to the Owner interest at the rate of 2.5% over the base lending rate of the National Westminster Bank Plc from time to time on all sums due under this agreement which are overdue and interest shall run from the due time for payment until actual payment (whether before or after any judgement of the court).

11.3 If the Hirer returns the Plant or any part thereof to the Owner at a time later than required by this agreement (time being of the essence) the Owner shall be entitled to charge and the Hirer shall pay the Rate for such further period, any part of a month being charged as a full month.

11.4 The Owner shall also be entitled to charge and to be paid by the Hirer, for every complete hour that each item of plant is used in excess of the Maximum Annual Usage, a sum equal to the Excess Rate for the contract multiplied by the appropriate number of excess hours. The Owner shall be entitled to assess the excess usage of the Plant on a monthly basis and charge the Excess Rate on a monthly basis as and when relevant.

11.5 The amount of any additional charge calculated under clause 11.4 above, shall be paid by the Hirer to the Owner within 10 working days of the date of invoice thereof. The Owner shall determine the number of excess hours over the Maximum Annual Usage on a monthly basis from a clock which is installed in the Plant (and with which the Hirer shall not tamper in any way whatsoever) and the evidence of such clock shall be final and binding upon the parties. Where an hour clock is not fitted to an item of Plant the hour clock from the air compressor will provide the definitive reading from which all usage calculations can be made.

11.6 In the event that the Hirer is liable to pay the Excess Rate, the Owner shall have the right to terminate this agreement upon one months’ written notice to the Hirer and the Rate and the Excess Rate shall apply to the date of collection of the Plant by the Owner.

11.7 The Owner reserves the right to increase the Rate once each year of the Hire Period to reflect any increases in costs by our suppliers, increase in wages or changes in exchange rates by a maximum of 5% of the Rate for the last year of the Hire Period.

12. SERVICING AND BREAKDOWN OF PLANT

12.1 The Hirer shall give notice to the Owner of any breakdown or failure or material deterioration of the Plant as soon as reasonably practicable.

12.2 The Owner shall not be liable for any loss or damage caused by the breakdown failure or deterioration of the Plant under any circumstance.

12.3 The Hirer shall not take any steps to carry out or attempt to carry out any repairs to the Plant during the Hire Period or any extended period of hire without the Owner’s prior written consent and the Owner shall not be liable for any loss if the Hirer has taken any such steps without the Owner’s consent. In the event that the Hirer undertakes any such steps without the Owners written consent the Owner reserves the right to make additional charges to return the equipment to its original condition.

12.4 The Owner shall undertake all servicing and repair of the Plant recommended by its manufacturers save for the routine maintenance outlined in clauses 9.6 to 9.9 which the Hirer must undertake.

12.5 The services shall be available:
(a) during the Owner’s normal business hours;
(b) for the Plant on Hire.

12.6 Upon receipt of notification of a breakdown the Owner will endeavour to provide an engineer at the earliest practical opportunity.

12.7 The engineer shall use all his skill and Knowledge to provide diagnosis and repair of faults or damage to restore the Plant to good working order.

12.8 If the Plant is beyond reasonable or economical repair the Owner shall provide a replacement of similar capacity.

12.9 Services will incur additional charges payable by the Hirer for diagnosis, repairs, adjustments, replacement parts, replacement plant and labour at the prevailing rate, where it is clear to the engineer that:
(a) the fault or damage were caused by improper use, wilful or deliberate acts or omissions, misuse, neglect, vandalism, fire, flood, failure of power supply;
(b) checks and maintenance specified at clauses 9.2 and 9.4 have not been carried out by the Hirer;
(c) there has been attempts by a person other than authorised personnel of the Owner to repair, modify, customise, upgrade or otherwise tamper with the normal or standard operation of the Plant;
(d) there is no fault with the Plant;
(e) the Hirer requires the services outside the Owner’s normal business hours;
(f) the Hirer did not immediately inform the Owner when the problem arose and the damage was increased by the delay in service and or repair;
(g) the fault or damage is caused by the environment, air quality or contamination in breach of the Hirer’s obligation set out at clause 9.1 above; or
(h) the fault or damage is as result of a breakdown of equipment or machinery within the Hirer’s pressure system but not subject to this agreement.

13. LIMITS ON LIABILITY

13.1 Except in respect of death or personal injury caused by the Owner’s negligence, the Owner shall not be liable to the Hirer by reason of any representation, (unless fraudulent), or any implied warranty, condition or other term, or any duty at common law, or under the express terms of this agreement, for any indirect, special or consequential loss or damage which arises out of or in connection with the performance of this agreement including but not limited to any indirect, special or consequential loss or damage which arises out of late delivery and/or non-delivery of goods and/or services.

13.2 The Owner shall not be liable to the Hirer for any:
(a) Loss of goodwill;
(b) Loss of business;
(c) Loss of anticipated profit or savings; or
(d) Pure economic loss.
13.3 Any claim against the Owner shall be limited to the value of the Rates received under this agreement in any one year.

14. INDEMNITY

The Hirer shall indemnify the Owner against all actions, claims or demands by third parties whether in tort or otherwise howsoever arising directly or indirectly in connection with the use, functioning or state of the Plant. In particular, but without prejudice to the generality of the foregoing, the Hirer shall comply with all instructions of the Owner and all legislation in relation to the use and condition of the Plant and shall indemnify the Owner against any cost, claim, demand, expenses or liability which the Owner may incur arising out of or in connection with such use of the Plant.

15. RETURN OF PLANT

On termination of this agreement, the Hirer shall return the Plant to the Owner in the same condition as it was in at the commencement of the Hire Period, subject to fair wear and tear sustained as a result of reasonable and proper use of the Plant for the purpose for which it was intended. If the Plant is not returned in the required condition, then the Owner shall charge the Hirer for the restoration/repair of the Plant to the same condition as it was at the commencement of the Hire Period or if cheaper charge the Hirer for new replacement.

16. TERMINATION

16.1 This agreement shall continue for the Minimum Hire Period, thereafter the Hirer may terminate this agreement upon the Hirer giving to the Owner a minimum of one months’ prior written notice, such notice period to end at the end of the Minimum Hire Period, or if the contract has rolled on, on the next anniversary of the end of the Minimum Hire Period after the notice is to be served.

16.2 The Owner may terminate the contract at any time after the end of the Minimum Hire Period by giving the Hirer one months’ prior written notice, such notice period to end at the end of the Minimum Hire Period or any time thereafter.

16.3 The Owner shall be entitled immediately to terminate this agreement by written notice to the Hirer if:

(a) the Hirer commits any material breach of any of the provisions of this agreement and in the case of a breach capable of remedy fails to remedy the same within seven days after receipt of a written notice from the Owner giving reasonable particulars of the breach and requiring it to be remedied;
(b) an encumbrancer takes possession or a receiver or administrative receiver or manager or sequestrator is appointed of the whole or any substantial part of the undertaking assets rights or revenues of the Hirer or a distress or other process is levied or enforced upon any of the assets rights or revenues of the Hirer;

(c) a petition is presented to, or any order is made by any competent court for the appointment of an administrator in relation to the Hirer;
(d) an administrator in relation to that other party is appointed pursuant to Schedule B1 of the Insolvency Act 1986;
(e) the Hirer is, or is adjudicated or found to be, insolvent or stops or suspends payment of its debts or is (or is deemed to be) unable to or admits inability to pay its debts as they fall due or proposes or enters into any voluntary arrangement or any composition or other arrangement for the benefit of its creditors generally or proceedings are commenced in relation to that other party under any law regulation or procedure relating to reconstruction or adjustment of debts;
(f) any petition is presented by any person (other than a petition which in the reasonable opinion of the Owner is frivolous or vexatious and which is withdrawn or stayed within 14 days) or any order is made by any competent court in regard to or any resolution is passed by the Hirer for its winding-up or dissolution or for the appointment of a liquidator or provisional liquidator of that other party (except for the purposes of solvent amalgamation or reconstruction and in such manner that the company resulting from such amalgamation or reconstruction effectively agrees to be bound by or assume the obligations imposed on that other party under this agreement);
(g) the Hirer’s financial position deteriorates to such an extent that in the Owner’s opinion the Hirer’s capability to adequately fulfil its obligations under this agreement has been placed in jeopardy; or
(h) the Hirer ceases or threatens to cease to carry on business.
16.4 Termination of this agreement shall be without prejudice to the accrued rights of the Owner under this agreement up to the time of termination.

17. BREACH

17.1 If the Hirer breaches any of the obligations set out in this agreement the Owner shall forthwith and without notice, be entitled by its servants, agents, certificated bailiffs or otherwise to enter any premises or location in which the Plant is situated and to repossess the Plant, the exercise of which right shall not prejudice the Owner’s rights to pursue other claims and remedies to which it may be entitled against the Hirer arising out of any breach of any clause in this agreement.

17.2 If the Hirer breaches Clause 15, in that the Hirer fails to return the Plant in the condition in which it was at the commencement of the Hire Period or at all, the Hirer shall forthwith, upon demand, pay to the Owner an amount equal to the cost of placing the Plant in the same condition as it was at the commencement of the Hire Period or an amount equal to the Value of the Plant, whichever sum is smaller.

Annex 1: Copy standard fee charges

All expenses incurred to complete works are chargeable to the Hirer at cost.

All consumables, parts and equipment used to complete works are chargeable to the Hirer at the Owner’s current sale price at the time of fitting.

Labour charges to be updated and or amended or replaced from time to time.