Hiring equipment is quite important in order to handle and maintenance the project. There are many types of agreements in a business relationship, one of them is called equipment rental agreement. You will use this contract when you need equipment in part of sectors of industries, for example, farming. Want to know more about this contract? Please check short review below!
What is Contract’s Equipment Hiring?
An equipment rental contract is a document in businesses that use to rent some equipment from other business partners. This deal explain each business partner’s obligations and responsibilities in their conditions and terms, for example, cost, payment, item’s conditions, and others.
One of obstacles that equipment rental organizations face is getting their equipment moved between jobsites without their knowledge. Sometimes it is difficult to manage and it is illegal. In order to solve this problem, to improve communication between business partners and, to avoid conflict, the rental equipment contract is something we need. The Equipment rental agreement will give protection from unnecessary issues that might possibly arise.
Is it necessary to have Equipment Hiring Contract?
You have to get an equipment hiring contract when you hire services to other business partners. In other words, maybe you can use this contract to rent some equipment that other business partners own.
Equipment Hiring Contract Specifications
The equipment rental deals can be used for a variety of items, such as:
- Heavy equipment (like scissor lift, forklift, and mini excavator)
- Materials of construction (including table saws, scaffolding, jackhammers)
- Visual and audio equipment (such as lights, cameras, microphones, turn tables, projectors)
- Disposal units and storage
- IT equipment (such as monitors, computers, hard drives, and speakers)
- Catering equipment (such as mixers, buffet tables, deep fryers, and barbeques)
- Event materials (including banquet tables, tents, outdoor heating systems)
When should my Equipment Rental Contract end?
- The fixed end date. After that date has due, the equipment should be returned to the real owner. All of the details must also be written in the short term equipment rental agreement.
- An indefinite hiring contract. It is one that automatically renews, meaning there is no end date on the equipment rental agreement. Most importantly, a partner should notify the other parties when they want the contract to end. If not, the contract will automatically renew.
Note that the agreement will involve:
- The lessor which should be stated clearly
- The tenants who are leasing the properties or items
How to Create This Equipment Rental Agreement?
- Get detailed information of both the business partners.
- Write down detailed equipment rental agreement terms and conditions
- Make the deposit of security terms.
- Write down the amount of rent cost to be paid in the equipment rental agreement.
- Write down the maintenance and repairs of the items.
- Check the legal responsibility for damage and loss.
- Do not forget to check the items to be rented.
An equipment rental contract is vital in business partnership to discuss clearly the outline of terms of rental of equipment during the work period. When it comes to constructing equipment rental contract for your company, the equipment rental agreement is what you need for. The templates are available with many formats such as PDF, MS Word, Google Sheet, and Google Docs.