1. HIRE CONDITIONS
1.1 The Hirer shall be responsible for keeping the equipment in good / clean condition (fair wear and tear is only accepted). All repairs or damages due to the Hirer’s fault will be invoiced to the Hirer as an extra cost.
1.2 Hirer should act responsibly and make sure that equipment is under the responsibility of its authorized person. Hirer should ask for its authorized person to sign the delivery note upon the receipt of the equipment and ensure that time sheets are filled out and signed. No claims or discrepancies will be acceptable after completion of works. Owner will not be held responsible for any negligence from Hirer or any of its representatives.
1.3 Supervision at the site will be the responsibility of the Hirer and the operator will work as per the supervisor’s instructions.
1.4 All punctures and tyre damages are the Hirer’s responsibility and damage or loss will be for the Hirer’s account.
1.5 Fuel will be at the cost of the Hirer.
1.6 Equipment are to be used for its proper purpose in a safe and correct manner in accordance with manufacture conditions and of any operating and/or safety instructions provided to or supplied to the Hirer by the Owner. Ensure that equipment is kept and operated in a suitable environment/ on level surfaces.
1.7 The Hirer shall immediately notify the Owner of any loss, accident, damage or defect in the equipment. Notice of breakdowns should be in writing and made before invoicing from the Owner. Otherwise, invoice shall be considered official and final.
1.8 The Hirer shall not sublet the equipment to any third party unless agreed otherwise in writing by the Owner permitting the subletting.
1.9 The equipment shall not be moved from the site to which it was delivered or consigned without the written permission of the Owner.
1.10 The Hirer shall pay the Owner full compensation for replacement and/or repair of any equipment which is not returned because it is lost or stolen or any equipment which is damaged and in need of repair to put it into the same condition it was in the time of rental. The Owner’s invoice for such is conclusive as to the amount Hirer shall pay under Owner’s cost for repair or replacement.
1.11 Hirer is to ensure that all Owners’ personnel (mechanics, operators, technicians, supervisors, etc.) have free access to our equipment at all times. Any gate/ security passes or permissions of any kind are to be provided the Hirer at Hirer’s expense.
1.12 Downtime will not be considered as a result of any gate pass being unavailable.
1.13 Any gate passes required to permit the removal of our equipment are entirely the responsibility of the Hirer and shall be to Hirer’s expense. These passes shall be provided prior to the equipment arriving at the site and all equipment will remain on hire until the collection process is complete.
1.14 In the event the Owner unable to remove their equipment at the time of Off Hire request due to Hirer’s fault, full hire charges will be applied until the collection of equipment.
1.15 All equipment are subject to availability at the time of order and can only be reserved by a confirmed Purchase order with the advanced payment.
2.1 The equipment is/are the responsibility of the Hirer from the time of delivery to or collection by the Hirer and all risks of insurance cover is required to be taken out by the Owner and remain in place from the time of delivery to or collection by the Hirer until the equipment is/are returned to the Lessor. This insurance cover is to be for FULL NEW REPLACEMENT VALUE plus 30% to cover administration and downtime.
2.2 All other insurances, of whatsoever nature, are the Hirer’s responsibility and strictly for the Hirer’s account.
2.3 For any equipment hired with or without an operator, in case of accidents, full insurance of the Third party and their personnel are for Hirer’s account and Hirer shall be responsible for any loss, damages, claims, injuries and death thereof. The Hirer shall also represent itself in Court for any litigation, proceedings and criminal/civil case filed arising therefrom.
2.4 Neither party shall be liable to the other party for non-performance of any of its obligations under the agreement due to force majeure causes including fire, flood, unavoidable accidents, government regulations, riots or insurrection, terrorist attack, enemy action etc. which are reasonable beyond control of either Party.
3. LOSS & DAMAGE
3.1 Hirer is responsible at all times for loss and damages to all equipment as supplied by the Owner. The hirer shall also be fully responsible for, and shall indemnify and hold the Owner harmless, against all claims by any person(s) whatsoever for injury to any person(s), damage to any property, and in respect of all costs and charges in connection therewith (including legal costs and fees), caused by, in connection with, or arising out on the use of the equipment, whether arising under common law or statute. In the event of loss or damage to the equipment, hire charges shall be continued until settlement has been affected between the Owner and the Hirer.
3.2 Owner makes no warranty of any kind regarding the rented equipment, except that Owner shall replace the equipment with identical or similar one if it fails to operate in accordance to manufacturer’s specifications and operation instructions. Such replacement shall be made as soon as practicable after collection of the non-conforming equipment.
3.3 Owner is not responsible for any kind of liabilities & losses due to the breakdown of the equipment or delay due to non-availability of the equipment.
4. RENTAL RATES
4.1 All rates are based on a minimum 10-hour day (except for Cranes and Man Lifts on minimum 8-hour day plus 2-hour transportation), 6 days week, 26 days, 260 hours month as applicable. Public holidays will be considered as working day. During Ramadan, minimum of 8 hours/day and 208 hours/month shall be strictly observed. Hours worked in excess to these minimum hours and on Fridays and public holidays will be charged additionally on pro-rata basis.
4.2 Regardless of the work done, the month of February will be recorded as full month i.e. (10 hours a day, 24 days a month). Hours worked in excess to these minimum hours and on Fridays and public holidays will be charged additionally on pro-rata basis.
4.3 If equipment is utilized less than specified time of 10 hours per day, the day will be charged as full working day. In case the equipment works less than the minimum hours due to no availability of work or inadequate weather conditions, the minimum hours as per agreed will be applicable.
4.4 For any equipment present on the work site, regardless to any work done, the day will be recorded as a full day and will be charged accordingly. Any hours of work done after 10 hours of idle position will be charged at pro-rata as an extra charge to the day.
4.5 No allowance will be made for any equipment or portion thereof which is claimed not to have been used. Acceptance of returned equipment by Owner does not constitute a waiver of any rights Owner has under the rental agreement.
4.6 For any equipment returned before the expiry of contractual period, then charges will be based on daily basis. The Rental Period shall be as set out in the Order, unless the Contract is terminated earlier in accordance with these Conditions.
4.7 The Rental Period may be extended by mutual written agreement of both parties and the daily rate set out in the Order shall apply to any extended Rental Period.
4.8 If the Rental Period has not been extended in accordance with clause 3.2 and the Equipment is not returned to AL SAHRA HEAVY EQUIPMENT on the return date set out in the Order, the Customer will be charged at the daily rate set out in the Order until the Equipment has been returned to AL SAHRA HEAVY EQUIPMENT.
5.1 The Hirer shall not pledge or encumber the rented equipment in any way. The Owner may terminate this agreement immediately upon failure of Hirer to make rental payments when due, or upon Hirer’s filling for protection from creditors in any court of competent jurisdiction.
5.2 The Owner shall be entitled to terminate this Agreement and withdraw their equipment at any time, if there would be any circumstances that would, at the absolute discretion of the Owner, constitute an infringement (or probability of the same) on the ownership of the equipment or would subject it to unusual conditions of use. The detrimental conditions of use include but are not limited to the following:
a.) If the equipment is used beyond limits of its capacity and/or used other than for its intended purpose;
b.) If the equipment is used other than for its intended purpose;
c.) If the equipment is not operated within the operating parameters, rated capacity prescribed for the same etc;
d.) If the equipment’s safety standard are not complied with.
In the event of termination of the agreement by the Owner under these clauses, the Hirer shall take immediate steps to demobilize the equipment and hereby undertakes to hand over the equipment safely to the Owner within one (1) day of such termination.
5.3 CONSEQUENCES OF TERMINATION
Upon termination of the Contract, however caused:
(a) AL SAHRA HEAVY EQUIPMENT consent to the Customer’s possession of the Equipment shall terminate and AL SAHRA HEAVY EQUIPMENT may, by its
authorized representatives, without notice and at the Customer’s expense, retake possession of the Equipment and for this purpose may enter the site or any premises at which
the Equipment is located; and
(b) the Customer shall pay to AL SAHRA HEAVY EQUIPMENT on demand:
(i) all Rental Payments and other sums due but unpaid at the date of such demand together with any interest accrued pursuant to clause 5.3;
(ii) any costs and expenses incurred by AL SAHRA HEAVY EQUIPMENT in recovering the Equipment and/or in collecting any sums due under the Contract (including any storage, insurance, repair, transport, legal and remarketing costs).
(C) Upon termination of the Contract pursuant to clause 5.1 or any other repudiation of the Contract by the Customer which is accepted by AL SAHRA HEAVY EQUIPMENT, without prejudice to any other rights or remedies of AL SAHRA HEAVY EQUIPMENT, the Customer shall pay to AL SAHRA HEAVY EQUIPMENT on demand a sum equal to the whole of the Rental Payments that would (but for the termination) have been payable if the Contract had continued from the date of such demand to the end of the Rental Period.
(D) Termination or expiry of the Contract shall not affect any rights, remedies or obligations of AL SAHRA HEAVY EQUIPMENT that have accrued up to the date of termination or expiry, including the right to claim damages in respect of any breach of the Contract which existed at or before the date of termination or expiry.
This agreement shall not be terminated by the Hirer unless agreed otherwise by the Owner. In the event of terminating the Agreement by the Hirer in violation of this clause, The Hirer shall indemnify the Owner for its losses and damages and be liable to compensate the Owner for all its cost arising therefrom.
All notices and other communications between the Parties under the Agreement shall be in writing and delivered by hand, fax or e- mail to the address included in the Form of Agreement. Oral/Verbal notices as to off hire or breakdowns shall not be deemed to constitute compliance with the provisions of this clause.
8. GOVERNING LAW & DISPUTES
The Agreement shall be governed by and construed in accordance with the laws of the State. In the event of any dispute between the Parties which cannot be amicably settled in accordance with the Rules of Arbitration of the International Chamber of Commerce. The arbitration shall be held in Bangalore, UAE in English Language.
This agreement is entered into at the Owner’s branch that issues the hire contract, and the Hirer agrees to non-exclusive jurisdiction of the Courts for that area to determine any dispute arising out of the interpretation, performance, or nonperformance of this rental agreement.
10. LIABILITY AND EQUIPMENT BREAKDOWN
10.1 In the event that the Equipment experiences a breakdown due to any defect in materials or workmanship, AL SAHRA HEAVY EQUIPMENT’s liability shall be limited to the cost of repair, including parts and labour, to return the Equipment to full working order.
10.2 AL SAHRA HEAVY EQUIPMENT may, at its sole discretion, extend the Rental Period at no cost to the Customer for the time required to replace or repair the Equipment. AL SAHRA HEAVY EQUIPMENT shall not be obligated to bear the costs of Customer’s labour or standby time in connection to any breakdown, nor any costs related to the delay of Customer projects.
10.3 Without prejudice to clause 7.4, AL SAHRA HEAVY EQUIPMENT’s maximum aggregate liability for breach of the Contract (including any liability for the acts or omissions of its employees, agents and subcontractors), whether arising in contract, delict (including negligence), misrepresentation or otherwise, shall in no circumstances exceed the cost of fulfilling its obligation under clause 10.1.
10.4 Nothing in these Conditions shall exclude or in any way limit AL SAHRA HEAVY EQUIPMENT’s liability for:
10.5 death or personal injury caused by its own negligence or the negligence of its employees, agents or subcontractors (as applicable); or fraud or fraudulent misrepresentation.
10.6 These Conditions set forth the full extent of AL SAHRA HEAVY EQUIPMENT’s obligations and liabilities in respect of the Equipment and its hiring to the Customer. In particular, there are no conditions, warranties or other terms, express or implied, including as to quality, fitness for a particular purpose or any other kind whatsoever, that are binding on AL SAHRA HEAVY EQUIPMENT except as specifically stated in these Conditions. Any condition, warranty or other term concerning the Equipment which might otherwise be implied into or incorporated within the Contract, whether by statute, common law or otherwise, is expressly excluded.
(c) AL SAHRA HEAVY EQUIPMENT shall not be liable to the Customer for any: loss of profit; loss of revenue; loss of business; indirect or consequential loss or damage, in each case, however caused, even if foreseeable.
a. The Customer agrees to indemnify and hold AL SAHRA HEAVY EQUIPMENT and its directors, officers, employees and agents, harmless from and against all liability and expenses (including legal costs on a full indemnity basis) howsoever arising or incurred, in respect of:
b. loss of or damage to property of the Customer whether owned, leased or hired, arising from, relating to or in connection with the performance or nonperformance of the Contract; or
c. injury to, or death of any person employed or engaged by the Customer arising from, relating to or in connection with the performance or nonperformance of the Contract.
a. During the Rental Period and the Risk Period, the Customer shall, at its own expense, provide and maintain the following insurances: insurance of the Equipment against loss by all risks of physical loss or damage by fire, theft or accident, in an amount equal to the full replacement value;
b. insurance for such amounts as a prudent owner or operator of the Equipment would insure for, or such amount as AL SAHRA HEAVY EQUIPMENT may from time to time reasonably require, to cover any third party or public liability risks of whatever nature and howsoever arising in connection with the Equipment; and
c. insurance against such other or further risks relating to the Equipment as may be required by law, together with such insurance as AL SAHRA HEAVY EQUIPMENT may from time to time consider reasonably necessary and advise to the Customer.
d. All insurance policies procured by the Customer shall be endorsed to provide AL SAHRA HEAVY EQUIPMENT with at least twenty (20) Business Days’ prior written notice of cancellation or material change (including any reduction in coverage or policy amount) and shall upon AL SAHRA HEAVY EQUIPMENT’s request name AL SAHRA HEAVY EQUIPMENT on the policies as a loss payee in relation to any claim relating to the Equipment. The Customer shall be responsible for paying any deductibles due on any claims under such insurance policies.
e. The Customer shall give immediate written notice to AL SAHRA HEAVY EQUIPMENT in the event of any loss, accident or damage to the Equipment arising out of or in connection with the Customer’s possession or use of the Equipment.
f. The Customer shall, upon request of AL SAHRA HEAVY EQUIPMENT, provide AL SAHRA HEAVY EQUIPMENT with certificates of insurances evidencing the coverage required at clause 12.a. If the Customer fails to place or maintain insurances or provide satisfactory evidence there of AL SAHRA HEAVY EQUIPMENT may refuse to provide the Equipment. If the Customer is self-insured, it shall furnish, upon request, written evidence of such fact to the satisfaction of AL SAHRA HEAVY EQUIPMENT. The provision of any insurance required
herein does not relieve the Customer of any responsibilities or obligations outlined in the Contract or for which the Customer may be liable by law or otherwise
13. ADDITIONAL CHARGES
• In addition to the Rental Payment(s) specified in the Order, AL SAHRA HEAVY EQUIPMENT has in the relevant circumstances the right to apply additional charges:
• for loss of or damage to the Equipment as a result of any failure by the Customer to comply with these Conditions;
• if the Equipment is damaged and it can be repaired, for loss of rental income during the period the Equipment is being repaired, provided such additional charges shall cease when the Equipment is returned to full working order;
• if the Equipment is damaged and cannot be repaired (i.e. it is written off) or the Equipment is lost or stolen, for loss of rental income during the period from the date the Equipment is damaged, lost or stolen to the date AL SAHRA HEAVY EQUIPMENT receives an amount equal to full replacement value of the Equipment;
• for outward delivery and/or collection of the Equipment, including any dismantling, packaging, transportation and shipping charges; and
• for AL SAHRA HEAVY EQUIPMENT’s packaging materials if such materials are not returned to AL SAHRA HEAVY EQUIPMENT at the end of the Rental Period or on earlier termination of the Contract;
14. PAYMENT TERMS
14.1 Standard terms of payment (Advanced CDC/ Cash) will be applicable. If not specified otherwise on the hire agreement or quotation.
14.2 Payment to the Owner by Hirer shall be made as per agreed payment terms. Late payments will be payable with interest and administration costs as deemed necessary by the Owner.
14.3 Note: VAT shall be applicable as per new government regulation in the UAE. All quoted rental rates in this agreement are exclusive of VAT and shall be charged additionally.
Disclosure and the Electronic Statement (E Statement) Consent Agreement:
Agreed and accepted by and on behalf of the Hirer subject to AL SAHRA HEAVY EQUIPMENT’s “Standard Terms & Conditions of rental of Equipment” which conditions the Hirer acknowledges having received and read and warrants that the Hirer is fully aware of this terms and condition of rental of Equipment & shall be considered as accepted by client(s) upon receiving LPO / placing order / even through mail confirmation / once the Equipment delivered at customer site.