Dry Hire Agreement
Background
  1. A.The Owner owns the Equipment.
  2. B.The Hirer would like to Dry Hire and use the Equipment.
  3. C.The Owner agrees to Dry Hire the Equipment to the Hirer for the Hire Period and the Hirer agrees to take the Equipment on hire for that period and to pay the Total Hire Charges for that Hire Period together with any applicable GST, on the terms and conditions set out in this Agreement.
Operative Terms
1. Definitions & Interpretation
1.1 Definitions

In this Agreement, the terms in the Reference Schedule have the meanings shown opposite them, and unless the context otherwise requires, the following terms have the following meaning:

AGREEMENTMeans this Dry Hire Agreement between the Owner and the Hirer.
AUTHORITYMeans any government or government department whether local, State, or Federal, and includes a person charged with the administration of a Law.
DEPOTMeans the property located at [insert] or such other place as nominated by the Owner from time to time.
DRY HIREMeans the hire of the Equipment without an Operator, but with all Fluids at maximum or normal levels (as required) as at the Commencement Date.
EQUIPMENTMeans the Equipment described in the Reference Schedule.
FLUIDSIncludes diesel fuel, oil, radiator water, and grease.
GSTHas the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 (Cth).
HIRE PERIODMeans the period beginning on the Commencement Date and ending on the Actual Expiry Date or, if the Equipment is stolen or damaged beyond repair, the date on which either an insurer of the Equipment, or the Owner confirms that it will accept that the Equipment has been stolen or damaged beyond repair, whichever is later.
INSURANCE DEDUCTIBLEIncludes any deductible, excess, or expense payable to an insurer following making a claim on the Owner’s insurance cover.
LAWIncludes the common law, any legislation passed by any Authority, statutory instruments and the requirements of any Authority.
OPERATIONS MANUALMeans the manufacturer’s operating and maintenance manual for the Equipment, as supplied with the Equipment or made available by the Owner, which sets out instructions, warnings, specifications and procedures for its safe operation, inspection and routine maintenance.
OPERATORMeans any person who is authorised to and operates the Equipment.
PERMITTED USEMeans the use of the Equipment for private or business purposes in accordance with all systems and procedures imposed or recommended by law, international standards, Australian standards, industry standards and manufacturers’ and distributors’ instructions, recommendations or guidelines and site-specific conditions or requirements manufacturer’s instructions and recommendations relating to the use and operation of the Equipment.
1.2 Interpretation

In the interpretation of this Agreement:

  1. (a)references to legislation or provisions of legislation include changes or re-enactments of the legislation and statutory instruments and regulations issued under the legislation;
  2. (b)words denoting the singular include the plural and vice versa, words denoting individuals or persons include bodies corporate and vice versa, references to documents or agreements also mean those documents or agreements as changed, novated or replaced, and words denoting one gender include all genders;
  3. (c)grammatical forms of defined words or phrases have corresponding meanings;
  4. (d)parties must perform their obligations on the dates and times fixed by reference to Brisbane;
  5. (e)reference to an amount of money is a reference to the amount in the lawful currency of the Commonwealth of Australia;
  6. (f)if the date on or by which anything is to be done is a Saturday, a Sunday or a public holiday in the place in which it has to be done, then it must be done on the next business day;
  7. (g)references to a party bind their executors, administrators and permitted assigns and transferees; and
  8. (h)obligations under this Agreement affecting more than one party bind them jointly and each of them severally.
2. Hire of Equipment
  1. (a)The Owner will Dry Hire the Equipment to the Hirer for the Hire Period and the Hirer will take the Equipment on Dry Hire and pay the Total Hire Charges for that Hire Period on the terms and conditions set out in this Agreement.
  2. (b)The Hirer must refuel and return the Equipment to the Depot at the end of the Hire Period in a reasonable state of cleanliness and in the same condition it was in at the Commencement Date (fair wear and tear excepted).
  3. (c)The Hirer must contact the Owner as soon as it becomes apparent that the Hirer will be unable to return the Equipment on the due date.
  4. (d)The Hirer must, at its own cost, check and maintain all Fluids in the Equipment at levels required by the Operations Manual and ensure the Equipment is operated and subjected to all routine inspections and daily pre start checks specified in the Operations Manual throughout the Hire Period, but the Hirer must not carry out, or procure, any repairs or non routine maintenance to the Equipment without the Owner’s prior written consent.
3. Title and Risk

The Hirer acknowledges and agrees that the:

  1. (a)use of the Equipment may involve risk of injury or damage to property;
  2. (b)Equipment is at the Hirer’s risk during the Hire Period;
  3. (c)Owner retains title to the Equipment and the Hirer’s rights to possess the Equipment are as a mere bailee only;
  4. (d)Owner may enter any property where the Equipment is located to carry out an inspection of the Equipment, after giving reasonable notice to the Hirer;
  5. (e)Hirer does not have any right to pledge the Owner’s credit in connection with the Equipment and agrees not to do so; and
  6. (f)Hirer must not agree, attempt, offer or purport to sell, assign, sub-let, lend, pledge, mortgage let on hire or otherwise part with or attempt to part with the personal possession of or otherwise deal with the Equipment and not to conceal or alter the Equipment or make any addition or alteration to, or repair of, the Equipment.
4. Costs
4.1 Hire Charges
  1. (a)The Hirer will pay to the Owner:
    1. (i)the Hire Charges for the Equipment for the Hire Period;
    2. (ii)any relevant refuelling, cleaning and repair/maintenance charges in the event that clause 2(b) is breached;
    3. (iii)all applicable fees and bond including but not limited to the Delivery Fee;
    4. (iv)any Other Costs set out in Clause 4.2 below; and
    5. (v)any excess arising out of an insurance claim in accordance with clause 11,
    as and when requested by the Owner (Total Hire Charges).
  2. (b)The Hirer must pay all other amounts payable under this Agreement, including any duties, fees, outgoings, penalties, fines, demands, charges or costs imposed by any Authority on or in connection with this Agreement or the Hirer’s hiring of the Equipment.
  3. (c)The Hirer must notify the Owner immediately upon becoming aware of any breakdown or apparent malfunction of the Equipment.
  4. (d)If, due to a breakdown not caused or contributed to by the misuse or negligence of the Hirer, the Equipment cannot be used for any period, the applicable Hire Charges will be reduced on a pro rata basis for that period.
  5. (e)If the Hirer fails to return the Equipment by the Scheduled Expiry Date, the Hirer must pay the Hire Charges for each additional day or part of a day after the Scheduled Expiry Date until the Actual Expiry Date, where each day is a consecutive 24 hour period (or part of such a period) after the Scheduled Expiry Date.
  6. (f)The Owner reserves the right to revise the Hire Charges and related charges for future Dry Hires without notice.
4.2 Other Costs

The Hirer will be responsible for:

  1. (a)all fuel consumed;
  2. (b)the Insurance Deductible, for any insurance claim made (successful or otherwise) under the Owner’s insurance cover arising directly or indirectly from the Hirer’s use of the Equipment;
  3. (c)any additional premium or other increase in cost of the Owner’s insurance cover arising out of the Hirer’s use of the Equipment;
  4. (d)any mechanical or technical inspection, cleaning, maintenance, or repair costs arising out of the use of the Equipment by the Hirer:
    1. (i)in breach of this Agreement; or
    2. (ii)resulting from any incident whilst the Hirer was responsible for the Equipment; and
  5. (e)the cost of arranging for the transportation of the Equipment or any part of it to the nearest authorised maintenance facility able to undertake necessary repairs to return the Equipment to at least the state it was in at the Commencement Date;
  6. (f)any other costs reasonably incurred by the Owner as a result of the Hirer hiring the Equipment in accordance with the terms of these Terms and Conditions (together, Other Costs).
5. Payment
  1. (a)The Hirer will:
    1. (i)be charged the Total Hire Charges, and invoiced after completion of the Dry Hire, with payment due 7 days from the date appearing on the invoice; or
    2. (ii)pay the Total Hire Charges in advance of the Hire Period,
    whichever applies under the section entitled Payment in the Reference Schedule.
  2. (b)The Hirer must make payments without set off, counterclaim, deduction or withholding whatsoever.
  3. (c)The Owner may at its discretion require the Hirer to pay interest on any overdue amount under this Agreement at a rate of 10% per annum, calculated daily and compounding monthly, until paid in full.
  4. (d)If the Hirer has provided credit card details to the Owner, the Hirer authorises the Owner to:
    1. (i)use those details and complete any documents necessary or desirable to enable the Owner to process payments through any credit card system; and
    2. (ii)debit that credit card for all amounts payable by the Hirer under this Agreement as and when they fall due.
6. Cancellation
6.1 Before the Commencement Date

If the Hirer cancels the Agreement within 7 days of the Hire Period, the Hirer will pay any Delivery Fee and/or mobilisation costs (if incurred).

6.2 During the Hire Period
  1. (a)Either party (cancelling party) may cancel this Agreement during the Hire Period by written notice to the other.
  2. (b)If the cancelling party is the Owner, the Hirer is entitled to a pro rata refund of the Hire Charges from the effective date of cancellation.
  3. (c)If the cancelling party is the Hirer:
    1. (i)where a Minimum Hire Period applies, the Hirer forfeits the balance of the Hire Charges for the Minimum Hire Period and must pay any Delivery Fee and/or mobilisation costs incurred; and
    2. (ii)where no Minimum Hire Period applies, the Hirer must pay the Cancellation Fee and any Delivery Fee and/or mobilisation costs incurred as set out in the Reference Schedule.
6.3 Consequences of Cancellation

If this Agreement is cancelled by either party:

  1. (a)the Owner is entitled to immediately take possession of the Equipment;
  2. (b)the Hirer must do all things possible to assist the Owner in taking possession of the Equipment, including by providing access to any property where the Equipment is located;
  3. (c)the Owner will not be liable for any loss or damage whatsoever arising from the cancellation; and
  4. (d)following the cancellation, the Hirer remains liable to the Owner for any Hire charges accrued up to the date that the Owner takes repossession and any other amounts owing under this Agreement.
7. Owner’s Obligations

The Owner will:

  1. (a)ensure the Equipment is available for collection by the Hirer on the Commencement Date; and
  2. (b)be responsible for all repairs, maintenance and replacements to the Equipment required as a result of fair wear and tear.
8. No Warranty as to Suitability
  1. (a)No promise, representation, warranty or undertaking has been given by or on behalf of the Owner with respect to the suitability or adequacy of the Equipment or any part of it for the purpose for which the Hirer is hiring the Equipment.
  2. (b)The Hirer accepts the condition of the Equipment upon collection and must satisfy itself that the Equipment is suitable for the purpose for which it is used.
  3. (c)Any advice, recommendation, information, assistance, or service given by the Owner in relation to the Equipment is provided without any warranty or accuracy, timeliness, or reliability. The Owner does not accept any liability or responsibility for any loss suffered as a result of the Hirer’s reliance on such advice, recommendation, information, assistance or service.
9. Operators

The Hirer will:

  1. (a)engage Operators that are:
    1. (i)suitably qualified, authorised, licensed and experienced;
    2. (ii)properly trained in the Equipment’s safe and proper use; and
    3. (iii)not affected by any physical or mental condition that would reasonably be expected to impair their ability to safely operate the Equipment;
  2. (b)supervise the Operators and ensure that they:
    1. (i)comply with all reasonable directions of the Owner;
    2. (ii)are given adequate access to the Equipment; and
    3. (iii)are not under the influence of drugs and/or alcohol, or otherwise impaired while operating the Equipment;
    4. (iv)do not race, test, misuse or operate the Equipment beyond its manufacturer-rated limits; and
  3. (c)ensure all Operators are fully aware of and comply with the terms and conditions set out in this Agreement, and the Operations Manual.
10. Hirer’s Obligations
10.1 Operation and Maintenance

The Hirer must:

  1. (a)only use the Equipment for the Permitted Use during the Hire Period and otherwise in accordance with the Operations Manual;
  2. (b)not allow any person other than an Operator to use the Equipment;
  3. (c)record the condition of the Equipment at the Commencement Date, including by taking clear, time‑stamped photographs of all visible surfaces and any existing damage, and promptly provide those records to the Owner on request;
  4. (d)pay any Cleaning Fee and reimburse the Owner for any refuelling costs and other costs incurred by the Owner as a result of the Equipment not being returned in good working order (being the condition the Equipment was in as at the Commencement Date, fair wear and tear excepted);
  5. (e)carry out all daily maintenance of the Equipment strictly in accordance with the Operations Manual and any reasonable directions given by the Owner;
  6. (f)be responsible for the security and safe keeping of the Equipment at all times and indemnify the Owner for any loss suffered in this regard through misuse, theft or otherwise;
  7. (g)ensure that the ground at the location where the Equipment is to be operated is adequate to support the Equipment; and
  8. (h)comply with all applicable Law, including those relating to operating the Equipment.
10.2 Repairs

The Hirer must not carry out, or authorise any third party to carry out, any repairs to the Equipment without the Owner’s prior written consent, except to the extent necessary to prevent further imminent damage or to protect health and safety. In all cases, the Hirer must promptly notify the Owner of any damage to the Equipment and provide all information and assistance reasonably required by the Owner to effect repairs or to make or progress any insurance claim.

10.3 Safety

The Hirer must:

  1. (a)at all times, take reasonable precautions to prevent loss, damage, injury or liability;
  2. (b)not use or operate the Equipment underground, in tidal zones, on or over water, on watercraft, on or with asbestos, in connection with aviation-related activities (including on airside or on airfields), or on or near rail tracks;
  3. (c)not use or operate the Equipment in connection with any high risk activities, including: (i) blasting or explosives work; (ii) emergency services or firefighting; (iii) the storage, handling, manufacture, pumping or transport of dangerous goods, oil, petrochemical or gas; (iv) waste facilities, landfills or any waste management activities beyond simple cartage; (v) construction or maintenance of tailing dams, tunnelling or underground works, underpinning, piling or scaffolding; (vi) arborist, tree surgeon or tree lopping work; and (vii) any use of prototype, modified or remote controlled plant or UAV/drone equipment;
  4. (d)adjust operating behaviour to suit the weather, visibility, surrounding environment, payload and site conditions when operating the Equipment;
  5. (e)immediately cease operating the Equipment should any conditions during the Hire Period make the Equipment dangerous to operate; and
  6. (f)immediately report any safety concerns or incident involving the Equipment that results in damage to any property to the Owner in writing.
11. Insurance
11.1 No Voiding of Policies

The Hirer will not do, permit to be done, or omit to do anything which may render void or voidable, or which may increase the premium of, any insurance relating to the Equipment, whether taken out by or for the benefit of the Hirer or the Owner.

11.2 Owner to Provide Insurance
  1. (a)The Owner will arrange insurance in respect of damage to the Equipment for the Hire Period.
  2. (b)The Hirer will:
    1. (i)provide the Owner with all information reasonably requested in connection with maintaining that insurance; and
    2. (ii)take all reasonable steps to preserve and protect all property, documents and records relevant to any potential or actual claim under the Owner’s insurance policy.
  3. (c)In the event of a claim under the Owner’s insurance in relation to the Equipment, the Hirer must, at its own cost:
    1. (i)cooperate with and assist the Owner as reasonably required, including by making available all relevant documents and personnel for interviews, statements and the provision of information; and
    2. (ii)pay the Insurance Deductible.
12. Repossession
  1. (a)The Owner may retake possession of the Equipment if the Hirer breaches any provision of this Agreement.
  2. (b)The Hirer must do all things possible to assist the Owner in taking possession of the Equipment, including by providing access to any property where the Equipment is located.
  3. (c)The Hirer irrevocably licences the Owner and its agents, on reasonable notice (except in an emergency), to enter any premises where the Equipment is located for the purpose of inspecting or retaking possession of the Equipment, to the extent permitted by law.
13. Exclusion of Liability

To the extent permitted by law, the Owner is not liable to the Hirer for any loss or damage, whether direct, indirect, liquidated, special or consequential and including loss or damage arising as a result of death or personal injury, however caused (including negligence) which the Hirer or any other person may suffer or incur and which may, without limiting the generality of the foregoing, arise directly or indirectly in respect of the Equipment, any defects in the Equipment or in respect of any failure or omission by the Owner or any of its officers, agents or employees to comply with the Agreement or any obligation imposed by Law.

14. Indemnity
  1. (a)The Hirer will indemnify the Owner from and against any liability, loss, damage, expense or claim which the Owner may incur, including to a third party, during or after the Hire Period, in respect of or arising from:
    1. (i)loss, damage or injury to property or person occurring directly or indirectly out of the use of the Equipment which was caused or contributed to by the Hirer’s use of the Equipment;
    2. (ii)the negligent acts or omission, misuse or mishandling of the Equipment by the Hirer;
    3. (iii)breach of any of these conditions whether by intent or not by the Hirer; and
    4. (iv)the Hirer’s failure to notify the Owner of any defect in the Equipment.
  2. (b)The indemnities covered by the preceding condition:
    1. (i)include penalties, fines, legal and other costs incurred by the Owner;
    2. (ii)do not apply when the loss, damage or injury was caused or substantially contributed to by a wilful or negligent act or omission by the Owner; and
    3. (iii)do not apply where the Owner is indemnified for the loss or damage from monies paid or recovered under any policy of insurance effected by either the Hirer or the Owner.
15. General
15.1 No Waiver

Time is of the essence of this Agreement, except that no delay by the Owner in exercising any right or power will operate as a waiver of that right or power. Nor will any single or partial exercise of any right or power preclude any other or further exercise of that right or power.

15.2 Assignment

The Hirer cannot licence or assign all or any part of its rights and/or obligations under this Agreement without the written approval of the Owner.

15.3 Variations

An amendment or variation to this Agreement is not effective unless it is in writing and signed by all parties.

15.4 Governing Law

This Agreement will be governed by the law of Queensland.

15.5 Notices
  1. (a)A notice or other communication must be in writing and sent to that party by email to their email address.
  2. (b)A notice or other communication will be treated as received:
    1. (i)when it enters the recipient’s information system, if sent during business hours on a business day; or
    2. (ii)at 9:00am on the next business day in the place where the notice is being received, if sent on a weekend or public holiday or after 5:00pm on a business day.
15.6 Electronic Signing & Counterparts

This Agreement may be:

  1. (a)executed by way of electronic signature and in any number of counterparts each of which will be an original but such counterparts together will constitute one and the same instrument and the date of this Agreement will be the date on which it is executed by the last party; and
  2. (b)entered into by and becomes binding on the parties named in the Agreement upon one party signing the Agreement that has been signed by the other party (or photocopy or electronic transmission of same) and transmitting via email a copy of it to the other party or to the other party’s agent or Solicitor.

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Complete your details below. By submitting this form you confirm you have read and agree to all terms above. A copy will be emailed to you and to Whitsundays Dig & Hire.

By typing your full legal name above and clicking Submit, you are executing this Dry Hire Agreement electronically. This constitutes a legally binding signature under Queensland law and clause 15.6 of this Agreement.