CPA Bulletin

www.cpa.uk.net CPA Bulletin > November 2024 37 Q&As: 1 q&a s The question may have optional answers depending on the relationship you have with your customer. To bring some clarity, the plant may be on hire under an ‘open-ended’ agreement, i.e., with a specific start date, but no specific end-date. In that instance, either party – more likely the customer - could terminate the hire before the Christmas shutdown, by giving the other party 7-working days’ notice, as per clause 24(a) of the Model Conditions. The Construction Industry Joint Council (CIJC) have stated that those sites which run under a CIJC agreement will close at the normal time on Friday 20th December. [Other sites may have differing finishing days and times.] Using the 20th as an example, the previous 7-working days would take you to Wednesday 11th December – (Thursday 12th will be day 1 of 7 for the notice) - when the customer should inform the owner that they wish to off-hire the plant, (and for it to be collected). Should the customer wish to have the plant collected, and re-delivered in the new year, this will result in them incurring two sets of fees - one for collection, the second for delivery. In the event a site closes early, i.e., before a collection could have taken place, then clause 23(c) may take effect. For the customer to avoid those two sets of fees, there may be a suggestion from either party to leave the plant on site, and instead ‘suspend’ the hire over Christmas. If this was agreed, and something untoward happened to the plant during this time; then the customer’s insurer (or their Loss Adjuster) may argue that as a suspension was agreed, then the customer’s liabilities/ responsibilities for the plant under the Model Conditions may equally be suspended. To avoid this potential conflict, it may be worth agreeing with the customer to charge them a nominal fee – say £1 per week, per item (provided the item in question is not being utilised by the customer), to ensure that the Model Conditions remains effective – as will the customer’s ‘hired-in plant’ insurance policy - during the shutdown period. These nominal sums can always be credited back to the customer when the following month’s invoice is submitted. It is advisable to speak with your customers to confirm when their site(s) will close, and whether any plant is being off-hired, and the timeframe they have to do so by. This will give you ample opportunity to arrange the logistics for any collections. Should you have any further questions, then please get in touch. With the Christmas shutdown approaching, we are considering how the issue of plant remaining on site during this period should be addressed with the customer. Any suggestions would be welcomed. Whilst every care has been taken to ensure the accuracy of the answers given within this section of the CPA Bulletin, no liability for any damage, liability, cost, loss and/or expense which the reader has incurred can be accepted by the Construction Plant-hire Association (CPA). The reader should obtain independent legal advice on any issue reported within the CPA Bulletin, before proceeding with a course of action. All plant hire agreements are subject to contract law, so what was agreed between the parties - whether verbal or written - confirms the duration of that particular hire agreement. However, to avoid any uncertainty, or the mishearing of any verbal agreement, a written response - whether hire agreement or email - should still be sent confirming what was verbally agreed. Upon receiving that written notification, it should be acknowledged by the other party. For a plant hire to be defined, there has to a specific start and end date; or possibly a start date, with an indication on the number of days/weeks/months the hire will last. By way of an example, if a hire was originally from a Monday to Friday, but the customer did not need it on the Friday, then the defined period is still till the Friday. An exception may come whereby the plant owner can accommodate the customer’s request, i.e. arrange short notice change in transport to collect on the Thursday. This would still be a defined hire period, albeit one day less. If transport cannot be arranged for the Thursday, and the owner is not obliged to comply with the customer’s wishes, the plant remains on site until the Friday, when the collection will be carried out - as originally agreed. For that particular hire to become indeterminate, the original end date of the Friday should change by the customer ideally by the Thursday (to avoid any aborted transport costs), with a confirmation that the customer is now uncertain when the new end-date will be. In that instance, if the customer then off hires it, say the following week, then clause 24(a) of the Model Conditions takes effect, and the customer is responsible for the plant for the following 7-working days, after that new off-hire has been given, and accepted by the owner. I hope that clarifies the position; but should you wish to discuss this further then please get in touch. We are looking for some clarity on what could be considered a ‘defined’ hire period. For the hire period to be consider defined, do you consider this needs to be formally communicated in writing and a written order? Or would a verbal agreement suffice, as long as each parties understanding was correct?