CPA Bulletin

www.cpa.uk.net CPA Bulletin > May 2024 41 Q&As: 2 The clause you may be thinking of is clause 12 - Limitation of Liability. In this instance, the Owner will have no liability for any loss the customer suffers - whether it is loss of productivity or other consequential loss, as a result of the machine breaking down, provided the breakdown is beyond the Owner’s reasonable control - as per clause 12(a). Should the breakdown be beyond the Owner’s reasonable control, then the Owner is not liable for the customer’s consequential or other losses - as per clause 12(b). Should that be the case, then under clause 12(c), the customer’s only redress would be the fact that they are not charged for the period whilst the machine is not operational. I hope that helps clarify the position, but if you have any further questions, then please get in touch. I have been trying to find within the CPA’s Model Conditions, where it states that we, the Owner, are not responsible the customer’s loss of productivity as a result of a machine’s ‘downtime’ due to a breakdown. Can you highlight the right clause for me. Once a hire has begun, then the charge rate for that machine is set for the duration of the contract/hire period and cannot be arbitrarily increased. To change the rate during the contract, you would either require the written agreement of the customer. Once that agreement is received, then the new rate will begin from that agreed date. The other option is, if it is for an indeterminate hire, i.e. a specific start date but no end date, then you can off-hire it by giving the correct notice, as per clause 24(a). Once off hired, then you could hire it to them under a new hire agreement at the revised rate. I have supplied amachine to a customer which is already on site and would like to increase the rate. Can I just implement this, or are there other steps I must take? The CPA itself does not have any particular insurance broker or company it recommends, but instead has a list of insurance brokers and companies which are CPA members. Each of their contact details can be found within the Insurance section of the CPA website at www.cpa.uk.net and any one of themwill be able to provide you with a competitive quote. Can you provide me with the contact details of an insurance broker/company which offers favourable rates for commercial insurance cover. It would very much depend on what is being supplied to the customer to decide if hire charges are suspended or not. If the plant is not being used by the customer on any particular bank/public holiday, then the suspension could apply on that day, but that may still depend on what was agreed between the customer and owner during any negotiations before the hire began. There will be eight bank/public holidays in 2024. Are there any bank/public holidays which could qualify the hire being suspended on those days? We had hired a machine to a customer under the Model Conditions and have tried to charge the customer the on-going two-thirds rate as a result of damage to the machine, but my customer is disputing that they are liable for that charge under the terms. I cannot find it within the terms and wonder if you can highlight the relevant clause(s). If the customer has accepted the Model Conditions for this hire, then you can refer them to clause 13(b), where you will find the following wording: …In the event of loss of or damage to the Plant, hire charges shall be continued at idle time (two-thirds) rates as defined in clause 25 until the settlement has been agreed. Payment of the settlement must be made within 21 calendar days of the date of the agreement or idle time charges can be reinstated from the date of that agreement. Should idle time charges be re-instated, the agreed settlement figure remains payable in full. Once you have highlighted that clause to your customer, they will understand why they have been charged. As the site had shut earlier than agreed, under clause 23(c), the machine will be deemed to be back on hire, and the customer will be responsible for the machine’s safekeeping. The customer will also be liable for the aborted collection costs too. We had hired a machine to a customer under the Model Conditions, and when we went to collect it at the end of the hire period, we found the site had closed earlier than told. Who is responsible for the machine - the customer, or the owner?