CPA Bulletin

40 CPA Bulletin > November 2024 www.cpa.uk.net Q&As: 4 INSURANCE Exclusive products for plant hirers, including Hired Out Plant Insurance Waiver and Short Term Hired In Plant Insurance for your customers. Insurance for plant hirers… from the experts. FOR ALL YOUR INSURANCE NEEDS Tel: 0800 141 2877 insurance@jcb.com www.jcbinsurance.co.uk Hired Out Plant Insurance Waiver Short Term Hired In Plant Insurance A copy of the document can be found near the bottom of the Employment page within the Legal Section of the website at www.cpa.uk.net/employment Does the CPA have a Modern/ Anti-Slavery template document which members can download? If you look at clause 23(c) of the Model Conditions, it states that if the plant cannot be collected, then it is deemed to be back on hire, and clause 13 - Hirer’s responsibility or loss and damage (to the Plant) will apply. From that point, if you look at clause 25, it states that if the plant is prevented from working, then the customer is charged two-thirds of the hire rate or such other rate that has been agreed in writing. Those charges continue until the plant is returned to you. In situations like this, it is your (commercial) decision whether to charge the (normal) two-thirds rate, or whether - as a goodwill gesture - to charge a lower amount. As your plant has been hired out to another CPA member, then if they have also used the Model Conditions with their customer, then those same conditions (and charges) would also apply to their customer – the sub-contractor. I am happy to discuss this response in more detail if you wish. We are looking for some advice with reference to a situation which has transpired due to the financial collapse of a contractor. We have a customer who has hired two machines from us under the Model Conditions, who had subsequently hired them on to a sub-contractor on an ISG site. These machines have now been impounded by ISG’s Administrators. Consequently, our customer has been unable to access the site to collect the machines. In these circumstances, please would you confirm if we are able to apply a two-thirds hire charge to our customer under CPA terms and conditions until the machines are collected and returned to us? Assuming that this is the case, please would you also confirm if our customer, who also operates under CPA terms and conditions, should charge their sub-contractor two-thirds hire?