What is the Difference Between Dry Hire and Wet Hire in England?

If your business lends or hires equipment, you must know the differences between dry hire and wet hire arrangements. Knowledge on this topic allows you to determine which option is most economically and commercially appropriate for your needs. Furthermore, you must consider the risks associated with each type. This article will explain the critical differences between dry hire and wet hire contracts to ensure you can choose the most suitable option for your business.

What is Dry Hire?

A dry hire arrangement involves you only hiring the item itself. So, if you hire a digger to landscape the back garden of your workplace, you would simply receive the digger itself. This means you are responsible for operating it with no digger driver to assist.

What is Wet Hire?

Using the digger example again, you would hire the digger and digger driver under a wet hire arrangement. This means that you could instruct the driver of the project, and they can carry out the work. Thus, a skilled operator, rather than yourself, would be responsible for operating the vehicle. The wording surrounding the hiring of the digger driver can cause wet hire arrangements to be more complex. A wet hire agreement involves a self-contractor and, therefore, needs to establish boundaries regarding what they will do and when and how they will do it.

What Are the Main Differences Between Them?

A dry hire arrangement involves hiring the equipment alone. In contrast, a wet hire arrangement adds an individual specialising in using that equipment. As such, wet hire arrangements tend to be more expensive. In addition, wet hire arrangements will have additional provisions to set boundaries on the use of the specialist. For example, the specialist may limit what they will perform, their working hours and safety provisions.

How Do I Know Which is Suitable For Me?

Your budget will be a factor because wet hire arrangements cost more. However, let us assume that cost is not an issue here.

Suppose your business holds an annual party for its clients, customers and contacts. The party will take place in a large venue, so you require a speaker system to enable you to address the crowd. You must choose between simply hiring the speaker system (under a dry hire) or the specialist operator as well (under a wet hire).

On the one hand, you may believe that flicking a few switches and speaking into a microphone is relatively simple, and your business could save the cost of the specialist. On the other hand, it is worth considering what might happen if the speaker equipment is challenging to set up or fails during usage. Accordingly, a wet hire may be the best choice for your business. The specialist can set up the equipment, ensure it is calibrated correctly and help with any issues. This will mean that your only involvement is using the microphone, allowing you to focus on networking during the party. Furthermore, should the speaker system fail under the operator’s control, you have recourse to claim back the hire payment.

What if My Business is Leasing Out Our Equipment?

The arrangement that suits your business will depend on the circumstances and will be a matter of determining risk. For example, suppose you have an expensive piece of equipment. In that case, you may only permit wet hire to ensure that an inexperienced person does not damage your property or injure someone else using it. However, your business will need an individual available and willing to operate the equipment on the dates in question.

Hire Agreement Requirements

It is essential to identify each party’s obligations in the agreement. Let us consider what you must include in a dry hire and wet hire agreement where your business is hiring an item to someone else.  

Dry Hire Requirements

You must focus on the financial implications of the recipient damaging or misusing equipment. A written hire agreement must ensure your business is not responsible for accidents or injuries caused by the hirer. Furthermore, you should guide the recipient on how to proceed if the equipment does not work. This is particularly important given that the person receiving the item will use it without assistance.  

Wet Hire Requirements

This will also address the financial implications of misuse (without the operator’s permission) and responsibility for incidents in a wet hire situation. Moreover, it should also address the extent of the operator’s obligations. This includes the activities they will conduct, available hours and health and safety. For example, if the hirer needs the equipment between particular hours, the qualified operator must be available for those hours.

Key Takeaways

While both agreements involve hiring goods or equipment, they do so differently. Dry hire involves hiring the equipment alone. In contrast, wet hire additionally retains the services of an operator for the equipment. Broadly speaking, a wet hire arrangement may be worth the extra expense where the item is complex to assemble and use. However, your business could save money by agreeing to a dry hire arrangement where the equipment is easy to use.

If you need help with dry or wet hire contracts, our experienced contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

Frequently Asked Questions