CPA Bulletin

www.cpa.uk.net CPA Bulletin > August 2024 45 Q&As: 2 Many CPA members hire out their plant and equipment to both a business and to a consumer (a homeowner). If they are hiring out to a homeowner, which will be for the home-owner’s personal benefit, (so for non-commercial activities) - whether this is work on their house or garden, then the CPA member would use the CPA’s Consumer Conditions. Depending on whether an operator is supplied with the plant/equipment, would dictate whether the member uses the CPA Consumer Conditions for Plant supplied with an Operator or without an Operator. If any business wants to hire plant and equipment from you, whether it is a small builder, landscape gardener, etc., then you would hire the plant/equipment to them under the CPA’s Model Conditions. It does not matter whether an operator is supplied or not; you would still use these same terms. Thank you for sending me a copy of the CPA’s Consumer Conditions. However, reading through it I saw the following clause: NON-BUSINESS HIRE The Plant and Equipment is hired to you on the basis that it is used only for private or non-commercial use. You must not use the Plant and Equipment for commercial purposes. A large portion of our customers are small builders and landscaping firms. How are these types of companies covered under the above terms? If you can provide the CPA with as much detail as possible, we can circulate that information to the membership, in the hope that it is seen and quickly recovered. Details regarding the plant, where it was delivered, etc., should be reported to the police, and a Crime Reference Number (CRN) obtained. The CRN, together with any other relevant information, should be passed to your insurance broker. If the plant was hired out under the Model Conditions, and it was stolen during the hire period, then the customer will be liable for the loss. The customer’s ‘hired-in plant’ insurance policy should cover the loss to the plant, but also the on-going two-thirds (idle-time) rate. If you need further clarification on reporting the loss, then please get in touch. We have unfortunately had an item of plant stolen from site. Can you outline what the process is for reporting the loss? As you are the intermediary between your customer and the plant owner, then your role will simply be passing liability/responsibility from your customer to the owner. As the plant was damaged during the hire period, you would be liable to the plant owner for the damage and the on-going two-thirds (idle-time) rate as stipulated in clause 13(b); and in turn, your customer will be liable to you in the in same way. This is subject to all parties being contracted under the Model Conditions. The on-going two-thirds (idle-time) rate will be subject to whether an operator is supplied or not. If an operator is not supplied when the plant was damaged, then the customer is charged two-thirds of the hire rate until settlement has been agreed. This is outlined in the latter part of clause 13(b) of the Model Conditions. However, if an operator is supplied, then the under the final line of clause 25 the cost is split: the plant element is charged at two-thirds, but the operator element is charged in full. The settlement process may take some time to be resolved depending on the number of parties involved (and their respective insurers / loss adjusters); however, the ongoing two-third charges continue until settlement is agreed. Once the settlement figure is agreed, then the on-going charges cease for 3 weeks while payment is made. If payment is not made within that time, then the charges resume. I hope this gives you sufficient clarity on the subject, but if you wish to discuss this in more depth, then please get in touch. We had an item of plant, which had been cross hired from another company, and delivered to our customer’s site under the Model Conditions. During the hire period, the plant was damaged, and I would like to be acquainted with the potential liability that we can face, and what, if any, can be passed on to our customer. When any motorised vehicle is travelling along the public highway, no matter what class of vehicle it is or how short the distance it travels, then the driver will need to have the appropriate driving licence for it. In addition, the vehicle needs to be taxed (Vehicle Excise Duty) and insured too. We have a contract requiring a rubber duck to travel along the public highway for up to 1km. Can you tell me if the driver needs a driving licence, as well as a plant operators’ certificate?