Terms of hire

Terms of Business

 

ISSUED: 09/03/2009

 

AGGREKO NORWAY AS – GENERAL CONDITIONS OF HIRE

1. Object

1.1 This agreement regulates the conditions of hire for machines, equipment, etc. from Aggreko Norway AS (“Aggreko”). If conditions other than those that appear in this agreement are to apply, then they shall be written down and included in a special contract document, to which these conditions are to be attached and represent part of the conditions of hire.

1.2 Hirer is responsible for reading and understanding these terms. If Aggreko doesn't receive any written notice from hirer, the terms are considered accepted.

1.3 Hirer acknowledges and accepts the rental Agreement, and that he is not dependent on warranties beyond these terms.

 

2. Definitions

2.1.1 Rental Company means Aggreko who rents out equipments to hirer

2.1.2 Rental Agreement means these general rental terms and the individual rental contract for the equipment. If any conflict between these two documents, the general rental terms overrides the individual rental contract.

2.1.3 Equipments means the machines and/or equipment/accessories specified in the rental agreement, that is rented to hirer during the rental period.

2.1.4 Hirer means the person / organization opposite to Aggreko specified in the rental agreement.

2.1.5 Deliver date means the equipment delivery date specified in the individual rental contract.

2.1.6 Purchase order means the individual order on Aggreko's equipment, signed by the hirer.

2.1.7 Rental period means the period according to the purchase order that the hirer shall rent the equipments.

 

3. Condition of the equipments on receipt

3.1 Unless Aggreko has received written notice to the contrary within four working days after the delivery date for machines on site, all the machines and equipment shall be regarded as having been delivered at the right time and in accordance with rental contract. If the hirer receives the equipment later than 24 hours after planned delivery, the time limit for notice is 3 days.

 

4. Ownership of the machines

4.1 The machines are and will remain the property of Aggreko at all times, and the hirer shall not have any rights to, claims against or interests in the machines. The hirer shall not remove or destroy any signs or labels on the machines indicating that Aggreko is the owner of the machines. The hirer shall keep the machines free of and without any and all forms of attachment, execution, seizure, arrest, distress, possessory lien, security interest and encumbrance. The hirer shall immediately notify Aggreko of such encumbrances. The Hirer shall indemnify Aggreko against all losses, damages, costs, charges and expenses arising as a result of failure to comply with this paragraph.

 

5.Use of the equipments

5.1 The hirer is responsible fort all users of the equipment to read and understand the enclosed user manuals and all applicable regulations, rules and maintenance procedures before the equipment is put to operation.

5.2 The equipment shall be used only for tasks and purpose it is designed for, and it should be treated with caution.

5.3 Hirer shall ensure that the machines are not used for loads beyond the brand's performance or in a way that can be assumed to cause damage to the machine (other than normal wear and tear). Hirer shall gather information about the machine condition and should not use the equipment when it is out of order, damaged or in a condition that might violate any applicable laws or regulations.

 

6. Using an operator

6.1 If the equipments are delivered with an operator from Aggreko, the operator shall work under the hirer's supervision, according to hirer's or his representative's instructions and regulations. The hirer ir responible for stopping and or correcting the operator if he discovers violation on security, health and environment regulations, or if the operator behaves inappropriately. Aggreko shall be informed in writing about circumstances like this. Hirer shall not allow other personnel to operate the equipments without prior concent from Aggreko.

6.2 Hirer shall approve the time sheets / service reports from the operator with his signature on the documents. It is the hirer's responsibility to be present when the operator ends his work to go through and sign the operator's time sheets / service reports. Not signed time sheets / service reports will be fully invoiced. Aggreko shall try as hard as possible to have time sheets / service reports signed.

 

7. Access to the machines for maintenance

7.1 The hirer shall allow Aggreko's employees, servants, agents and insurers access to the machines at all reasonable times to inspect and maintain the same. The hirer shall make the machines available so that Aggreko can perform maintenance or service (whether routine or otherwise) within one week after Aggreko has notified the hirer that such maintenance or service shall be performed.

 

8. Routine maintenance/service

8.1 Aggreko shall, either itself or through an agreement, provide regular maintenance and servicing during the agreement period in accordance with Aggreko’s standard practice.

8.1.1 Fuel, oil and lubricants shall, when supplied by the hirer, be of a grade and type specified by Aggreko.

8.1.2 Coolant, when supplied by the hirer, shall be a mixture of clean fresh water and antifreeze in a proportion and of a grade and type specified by Aggreko.

8.2 Hirer is responsible for covering all costs for supplies such as oil, air filters, oil filters, diesel filters and racor filters that are changed during service. hirer also covers labor costs, travel expenses, food and lodging as secondary costs due to periodic maintenance during the rental period

8.3 Hirer must provide regular maintenance and service according to Aggreko's specifications during the rental period, either by himself or by hiring a qualified 3rd party service company.

8.4 Aggreko can follow up and perform periodic maintenance on the equipment for the hirer's costs. In that case both parties must sign a maintenance agreement.

8.5 Hirer shall be able to find out the value of the equipment's hour meter at any time during the rental period. This is necessary to schedule and perform periodic maintenance on the equipments.

8.6 Hirer shall inform Aggreko in writing when there is need for periodic service on the rented equipments. Periodic service intervals is set in user manual, service manual and/or on service labels on equipments. If no written information about service intervals is found, Aggreko shall be informed immediately.

8.7 Hirer is responsible for sending to Aggreko a written service report including bills for oil and filters that documents service on the equipment performed by hirer or 3rd party.

8.8 If periodic maintenance is not documented performed according to specified intervals during the rental period, the hirer liable for repairs as a result of this, as well as the costs for the next service. In this case, Aggreko can invoice a penalty fee for lack of service up to NOK 6.000, - + VAT. The economic responsibility shall not exceed the equipment acquisition value.

8.9 If Aggreko has agreed to perform equipment service according to service contract, and fails to perform the service within a week after Aggreko was notified according to the terms off this section, the costs of both the next service and any subsequent repairs as a result of the lack of service shall be covered by Aggreko.

 

9. Transportation and return of the equipments

9.1 Aggreko's staff assisting in equipment loading and unloading, shall perform the work as representatives of hirer and under the hirer's supervision and instruction.

9.2 The sender of the equipment is responsible for issuing the necessary freight documents.

9.3 Hirer is responsible for returning the rented equipment to Aggreko at the end of the rental period. Regardless of Incoterm's terms, the hirer covers all costs for shipping and unloading the equipment at the agreed delivery address. If the equipment or parts of equipment is not returned to Aggreko at the end of the rental period, the customer will be invoiced for renting the remaining equipment according to Aggreko's general price list, unless other terms are settled with Aggreko.

 

10. Breakdowns

10.1 Aggreko provides no compensation or payback as a result of planned shutdowns due to for example necessary maintenance and inspection.

10.2 If there is a shutdown on the rented equipments as a result of:

  • clogged fuel filters
  • incorrect or polluted fuel
  • Errors or lack of external electrical power
  • lack of periodic maintenance, or periodic maintenance reports
  • incorrect equipment operation
  • incorrect or deficient installation by hirer

 

 

 

The hirer covers all costs related to repair and change of rented hired equipment. Hirer will be charged for rental fee according to the contract during the shutdown period, and during the time for replacements and repairs.

10.3 If there is a an equipment shutdown caused by other errors, Aggreko covers expenses for equipment repairs or exchange (except for paragraph 10.6)

10.4 If it is practically impossible to repair the machines, and alternative machines are not available, Aggreko can end the rental agreement immediately and will not have any liability to hirer as a result of contract termination or for any secondary effects of the shutdown, and the consequences thereof.

10.5 In the event of shutdown or unsatisfactory operation on parts of the rented equipments, Aggreko shall be notified immediately. Hirer shall not attempt to make repairs on his own, except in the case where Aggreko has granted permission for specified work.

10.6 If shutdowns occur as a result of events beyond Aggreko's or hirer's control, the rental agreement will end at the time of shutdown, unless hirer covers all costs related to bringing the equipments back to operation.

10.7 Costs of replacements and repairs as a result of a shutdown is limited upwards to 30% of the total value of the rental agreement. Hirer can cover the costs beyond this to continue the rent.

10.8 Aggreko shall perform every possible and practical actions to reduce shutdown periods. Hirer can not organize / order express shipping or other services without Aggreko's approval from sales department or management.

 

11. Aggreko's liability

11.1 Notwithstanding and without prejudice to any other terms of the agreement, Aggreko shall accept liability for damage, loss or injury to the machines arising:

  1. prior to delivery of the machines to the agreed site when the machines are transported by means of transport that is arranged or owned by Aggreko,
  2. until the equipment assembly on the hirer's destination is completed and tested OK, assumed the assembly is exclusively controlled or performed by Aggreko,
  3. from starting the disassembly of the machines on site, provided such disassembly is entirely within Aggreko's control,
  4. after removal of the machines from the delivery site, when the machines are transported by transport arranged or owned by Aggreko.

 

12. Pricing and payment terms

12.1 Prices are specified in attached contract, and/or is invoiced monthly according to Aggreko's rates valid at the rental period.

12.2 Rental, purchases, service cost and service personnel cost are invoiced immediately after the costs occurs unless otherwise agreed. Payment terms are defined in Aggreko's order confirmation or in the contract / purchase order signed by both parties. Additional interest will be added if the payment terms are not complied with.

12.3 Rental rates will be invoiced according to contract. For rental periods longer than 6 months Aggreko reserves the right to adjust the rental rate according to market price index for such equipment. Hirer shall be informed at least 4 weeks before such an adjustment is carried out.

12.4 Aggreko reserves the right to charge a cancellation fee of up to the total remaining rental fee if the equipment is returned before the contract expires. If a confirmed order is canceled by the hirer before delivery date, Aggreko can invoice up to 30% of the total rental fee for the planned rental period.

12.5 Invoice complaints must be submitted within 4 days before the invoice payment date.

12.6 If hirer wants to extend the rental period, he must notifiy Aggreko by fax or e-mail within 8 business days before the rental period expires. The rental rates will remain unchanged for the extension period if the contract does not indicate anything else.

 

13. Insurance and accidents

13.1 The equipment shall be insured during the rental period. Hirer is responsible for a valid insurance for the rented equipments. Insurance must cover theft, damages, vandalism, fire, flooding and other risks at the location of the machines during the rental period.

13.2 At least one week before the rental period starts, hirer shall document to Aggreko a valid insurance contracts confirming that the insurance value is set according to the equipment's insurance value. The equipment's insurance value is found on page 2 of the rental proposal/contract.

13.3 If hirer can't document a valid insurance contract for the rented equipment, Hirer must buy himself out of the insurance responsibility by paying for insurance apostasy. The apostasy cost will cover repair or replacement of equipment as a consequence of an equipment damage. The hirer share of an insurance damage is NOK 15.000 ex. VAT. The apostasy cost is set by Aggreko, and shall be defined in the rental contract.

13.4 Cables and storage equipments such as cable drums or the like are not included in the insurance apostasy. If a rented cable or any other rented item is lost, the hirer will be liable for the acquisition value of lost items.

13.5 If major negligence of the hirer or third party, hirer could be financially responsible for consequences, upward limited to equipment acquisition value. Insurance apostasy does not apply for major negligence.

13.6 If the equipment is involved in an accident / accident leading to damage to persons or property, Aggreko shall immediately be notified by phone and receive written confirmation by fax or e-mail about the circomstances. Hirer shall not not give any concessions, offers, promises of payment or compensation, without the prior written consent from Aggreko.

 

14. Rehiring / subletting

14.1 The machines or components of the machines shall not be rehired, sublet, lent or otherwise made available to third parties without the written consent of Aggreko, and the hirer shall indemnify Aggreko against any losses, damage, costs, charges or expenses arising as a result of failing to comply with this paragraph.

14.2 The hirer shall not assign the agreement or parts thereof, or any benefits or rights in, or in accordance with, the agreement without having obtained prior written consent from Aggreko. Aggreko may refuse without any further justification.

 

15.Training

15.1 The hirer accepts his duty to read and understand the service and user manuals before the equipment is put into operation, unless an operator is present at all time during operation. For help and guidance at equipment shutdown, hirer can contact Aggreko's 24 hour duty telephone 810 00 333. This service shall not be used for user education beyond working hours. Aggreko will invoice NOK 1.350 per started hour for education on this line beyond working hours.

 

16. Force Majeure

16.1 Neither Aggreko nor the hirer shall have any liability for any direct or indirect consequence of, any delays or performance failures on its part that are attributable to force Majeure.

 

17. Breach of contract, cancellation and termination

17.1 The agreement can be terminated with immediate effect if:

17.1.1 the terms of the agreement are not observed

17.1.2 the hirer does not pay any outstanding amounts to Aggreko at the proper time, or

18. Indemnification/damages

18.1 The hirer is liable for:

18.1.1 loss and damage to hirer's or subcontractor's property, and

18.1.2 injuries or death on hirer's or subcontractor's personnel,

and shall keep Aggreko fully indemnified.

18.2 Aggreko is liable for:

18.2.1 loss and damage on hirer's or subcontractor's property, as long as the hirer pays Aggreko for exemption for such liability in accordance with Article 15.1; and

18.2.2 injuries or death on hirer's or subcontractor's personnel;

and keep hirer fully indemnified.

18.3 Both the hirer and Aggreko shall have no responsibilities for the other part's secondary cost or loss, nor loss of income.

18.4 Hirer shall keep Aggreko fully indemnified from 3. party claims for loss or damages caused by hirer or by hirers subcontractors.

18.5 Aggreko shall keep hirer fully indemnified from 3rd party claims for loss or damages caused by Aggreko or by Aggreko's subcontractors.

 

19.Exclusion of warranties

19.1 Aggreko warrants that the machines shall be free from any defects in their design, workmanship or materials, which can affect the proper and safe operation of the machines, and Aggreko shall rectify any such faults that are identified or occur during the hire period. This does not apply if the fault is attributed to circumstances on the part of the hirer.

 

20. Confidentiality

20.1 Any information disclosed to one of the parties concerning the operations of the other party shall be treated as confidential and not be disclosed to third parties during the period of the agreement or thereafter. Both of the parties shall take the strictest possible precautions to ensure that this provision is observed, and the aggrieved party is entitled to take any legal steps he deems to be necessary, including the immediate termination of this agreement, if a violation of this provision is pointed out.

 

21. Resolution of disputes and choice of law

21.1 If a dispute or disagreement arises under this agreement, the parties shall seek to resolve the matter amicably. The hirer may not retain more than the amount in dispute.

21.2 Any disputes shall be dealt with under Norwegian law. The municipality where the equipment is rented is the proper court of venue.

 

22. General

22.1 Note that it is the hirer's responsibility to inform Aggreko before delivery of equipment, if the equipment will be used / placed near hazardous material or in a very dusty environment. Separate maintenance procedures may apply for use offshore, on ships / boats, in gravel pits, mines or tunnels, or asfalt plants.

 

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+47 810 00 333

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