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From time to time, your business will need to hire equipment from another company. This is particularly the case where an item is too expensive to purchase or if you would not use it very often. However, depending on the equipment in question, it is worth considering whether to commit to a wet hire contract. This article will explain the purpose of wet hire contracts and the circumstances in which they may benefit your organisation.
Wet Hire Contract
A wet hire contract is a written agreement in which your company agrees to hire an operative alongside the item in question.
So, for example, if you hire a massive sound system for your company’s annual Christmas party, you may wish to hire a sound technician to set it up. The contract could also require the same equipment operator to remain there for the duration of the party to attend to any issues and then pack it away at the end. Before arrival, the operative should be aware of your company’s aims and objectives. However, they will not act in a way that puts them in knowing breach of health and safety rules.
As no one wants the possibility of a silent Christmas party with no working microphone for speeches and an absence of music, many businesses would consider the price of an efficient operative, money well spent.
Alternative to Wet Hire?
The alternative to wet hire is to hire the equipment alone without any operative. This is known as a dry hire. It is a more straightforward commercial contract because it simply agrees on a fee for the equipment in question and the date for its collection and return.
However, there is a common misconception that dry hire contracts are much cheaper. This is not the case where an unskilled individual uses the equipment and damages it absent a hired operative. This could be particularly expensive if the equipment is valuable.
So if, for example, your business hires a vehicle and crashes it, the cost of the damage is likely to exceed if you hire an operative to use the vehicle for you.
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Benefits of Wet Hire Contracts
A robust wet hire agreement will confirm the provision of an operative and their available hours and primary duties under the contract. A lawyer will typically draft these to ensure the correct level of detail, including detailing any need to clarify who will cover the costs of any incident with the equipment in question. Below are three main benefits of wet hire contracts.
1. No Risk of Damage Payments
One of the most significant risks of dry hire contracts is that they contain provisions that your business will cover any damage caused to the hired equipment. In contrast, a wet hire agreement contains little risk to your company as the operative is in sole charge of the equipment.
For example, imagine your organisation hiring a gardener and some gardening equipment, such as a chainsaw and hedge trimmers. You hire them to sort out the gardens to the rear of your premises. The only way your business will likely damage its equipment would be in the bizarre event of a staff member using them without permission.
2. More Recourse to Recover Costs
Naturally, all equipment has a limited lifespan and items fail to work from time to time. If your business has hired the equipment under a wet hire agreement, they will not place the blame at your door.
In contrast, it is common for hirers to blame the end user when equipment breaks under a dry hire agreement.
Naturally, a wet hire agreement ensures that the operative is there to see that the specialist equipment has genuinely stopped working without any fault of your organisation.
3. Reduced Risk of Legal Liability for Accidents
Many of the items hired by businesses in England can cause harm to others. For example, many companies in the UK hire:
- vehicles;
- heavy machinery; and
- other potentially dangerous items.
Where operatives use the equipment under wet hire agreements, the primary liability for any incidents caused should remain with the hiring company. This is because a contract exists under which they agree to provide an individual competent enough to use the equipment.
In contrast, if your business agrees to a dry hire agreement and uses the equipment itself, it is liable for any damage caused to individuals or property through negligence or misuse. This means that your organisation could face legal action and potentially payment of financial compensation to the affected parties.
Key Takeaways
A wet hire agreement is where you hire equipment for your company and an operative with it. The main benefit of hiring the equipment on a wet hire basis is that it provides additional peace of mind for your business. This is because, for example, of the reduced risk of liability for accidents and no risk of damage payments.
If you need advice on 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
Yes, the devil is in the detail with agreements of this nature, particularly given the need to clarify who will cover the costs of any incident with the equipment in question.
Yes, but they will not act in a way that puts them in knowing breach of health and safety rules.
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