CPA Bulletin

q & a s We are a hire company and we hire out to tree surgery/landscaping businesses. The majority of our machines are hired out without an operator. I think I have misunderstood clause 3 below: 3. NON-BUSINESS HIRE The Plant and Equipment is hired to you on the basis that it is used only for the private or non-commercial use. You must not use the Plant and Equipment for commercial purposes. I read this clause to be ‘if the Plant and Equipment is hired out for non-business hire then it cannot be used commercially’. However, it has been highlighted to me that this actually means we should not be hiring out to businesses as the contract terms may not stand up to scrutiny should there ever be a dispute. Can you help clarify the position please? When you are hiring out to other businesses, you use the CPA’s Model Conditions. You would use them whether an operator is being supplied with the equipment or not. The terms you are referring to relate to hiring out to a consumer (a home owner), not to a business. As you hire out to tree surgery/ landscaping businesses, you would use the Model Conditions, not the Consumer Conditions. If you need copies of the Model Conditions, then please get in touch. Q&As: 1 66 CPA Bulletin > May 2019 www.cpa.uk.net I have had an enquiry from one of my construction sites regarding towing generators and compressors on the public highway, and whether they are permitted to carry red diesel during this operation. I was wondering if you could clarify the position for me. Yes, diesel can be stored onboard the generator/compressor, providing the fuel isn’t being used to provide any form of motive power to the unit. The fuel must be contained within the manufacturer’s designated store e.g. the fuel tank for the generator/compressor, etc. Transporting of diesel in the trailer is exempt from the Carriage of Dangerous Goods Act 2009 providing the conditions in ADR Special Provision 363 are met. Yes, you should as a matter of good business practice. If you are hiring from another company (whether it is a CPA member or not), they may insist on seeing a copy of your ‘hired-in plant’ insurance cover before supplying any plant to you. This stipulation may be required as part of the Owner’s own insurance policy. This in turn, is something you should do as the “Plant Owner” when supplying to your own customer. We are looking to do our first ‘cross hire’. The company we are hiring off have asked to see a copy of our ‘hired-in plant’ insurance policy. Is this something we need to do? Would a machine hired to a customer based in the Republic of Ireland be covered by CPA’s Model Conditions? You can hire to a customer based in the Republic of Ireland and still be covered under the CPA’s Model Conditions. If there was ever a dispute, then under clause 35(a) of the Model Conditions, jurisdiction would be decided on where the Plant Owner’s head office is based. We do a lot of short duration consumer hires - 1 to 2 days - using the CPA Consumer Conditions. We inform the customer that they need to have insurance cover in place. Is notifying them sufficient, or should we ask to see a copy of their insurance cover? It is your decision whether you wish to see the customer’s insurance policy before the hire commences, but it is advisable. Any verbal notification given to the customer for insurance cover, also needs to be confirmed in writing on the hire agreement, which the customer reads and signs before the plant arrives at site or is collected from the depot. This confirmation should also be stated in any email sent to the customer detailing what they are hiring, for how long, etc. As a reminder to the customer, if they haven’t any cover, then they will be personally liable for any loss or damage to the plant during the hire period. The customer may need to be reminded that if they think their household insurance policy covers them for the plant, then this is something they will need to check with their household policy provider before the plant is collected from the depot or delivered to their home. Other customers may mistakenly believe that part of the hire rate includes insurance cover for the plant whilst it is out on hire. This misapprehension needs to be corrected at the earliest opportunity.