Hire Terms

Terms of Business

 

ISSUED: 14/10/2008

 

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.

2                    Loading and unloading

 

2.1              The hirer shall be responsible for loading and unloading the machines on site, and personnel from Aggreko who assist with the loading and unloading shall do so as representatives of the hirer and under the hirer’s management and control.

3                    Condition of the machine on receipt

 

3.1              Unless Aggreko has received written notice to the contrary within three working days after the delivery date for machines on site, or completion of the assembly of the machines on site, all the machines shall be regarded as having been delivered at the right time and in accordance with the hirer’s wishes.

4                    Supervision and maintenance of the machines

 

4.1              The hired objects shall be used exclusively for the work tasks and under the working conditions they are designed for. The equipment shall be treated with a reasonable degree of care.

4.2              The hirer shall be responsible at his own expense for storing and insuring the machines during the hire period, for keeping the machines in good condition in accordance with Aggreko’s specifications, for lubricating the machines and changing the lubricating oil in accordance with Aggreko’s instructions, and for using the machines in accordance with the specifications, as well as the relevant laws and regulations. The hirer shall also ensure that the machines are not used for purposes beyond its rated capacity or in a manner that can be assumed to result in a reduction in the value of the machine (excluding ordinary wear and tear). The hirer shall check the machines’ lubricating oil and coolant level daily and make sure that the lubricating oil and coolant is kept at the level necessary for the proper operation of the machines in accordance with Aggreko’s specifications.

4.3              The hirer shall keep himself acquainted with the condition of the machines and not use them when they are broken, damaged or in a hazardous condition, or in a condition that can result in a violation of any current laws or regulations.

 

5                    Duty to return the machines

 

5.1              The hirer bears complete and full responsibility for returning all the machines to Aggreko at the end of the agreed hire period or when there is an obligation to return the machines. The machines shall be returned to Aggreko in fully operational condition.

6                    Ownership of the machines

 

6.1              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 clause.

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.

8.2              The hirer shall notify Aggreko when the machines have operated for 250 hours since it was last serviced by Aggreko or since the start of the hire period, whichever is later.

8.3              If Aggreko performs routine service within one week of such notice being received by Aggreko, the costs of such service will normally be met by Aggreko. 

8.4              If service is not performed within one week of the machines having operated for 300 hours and the hirer has failed to notify Aggreko as provided in this clause, then the hirer shall compensate Aggreko for additional wear, tear and damage to the machines by paying the full cost of both the next service and any consequential repairs. 

8.5              If Aggreko fails to service the machines within one week of receipt of notification by the hirer as provided in this clause, then the cost of both the next service and any consequential repair costs will be met by Aggreko.

9                    Fuel, oil, lubricants and coolant

 

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

9.2              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.

10                Transport

10.1          The hirer shall bear the cost of (and, if required by Aggreko, arrange) (i) transport of the machines from the collection place specified by Aggreko to the site and (ii) the subsequent return of the machines to the specified collection place.

11                Breakdowns

 

11.1          Breakdowns or faults in the machines resulting from ordinary use or fair wear and tear or the development of an inherent fault or a fault not ascertainable by reasonable examination prior to commencement of the hire period may, at Aggreko's option, either (i) be repaired at Aggreko's expense and with the least reasonably practicable delay, in which case the hirer shall not be charged from its notification of a breakdown to Aggreko until repairs are completed or (ii) Aggreko may replace the relevant machines.

11.2          Any other breakdown or fault may, at Aggreko's option, either be repaired or replaced at the hirer's expense.

11.3          If it is practically impossible to repair the machines and new machines are not available, Aggreko may terminate the hire agreement forthwith and will not have any liability whatever to the hirer for such termination or any consequences of such breakdown, fault or termination

11.4          Any breakdown or the unsatisfactory working of any part of the machines must be notified immediately to Aggreko. The hirer shall not attempt to effect repairs himself without the express consent of Aggreko.

11.5          No relief from hire charges or claims will be accepted by Aggreko for stoppages due to causes beyond Aggreko's control. 

12                Aggreko’s liability

 

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

(i)         prior to delivery of the machines to the site when the machines are transported by means of transport that is arranged or owned by Aggreko,

 

(ii)        during assembly of the machines on site, provided such assembly is entirely within Aggreko's control,

 

(iii)       during disassembly of the machines on site, provided such disassembly is entirely within Aggreko's control,

 

(iv)       after removal of the machines from the site, when the machines are transported by transport arranged or owned by Aggreko.

13                Use of operators

 

13.1          If an operator is provided with the machines, he shall work under the supervision and instructions of the hirer or his representatives and, for the hire period, the operator shall be deemed to be an employee of the hirer, who shall be responsible for his acts and omissions (including negligent acts and omissions) as if he were in the hirer's direct employment. The hirer shall not permit any other person to operate the machines without Aggreko's prior written consent.

14                Price

14.1          The initial hire rates for machines and services are the rates in force at the time of delivery of the machines, but in the case of long term hires, Aggreko reserves the right, upon giving the hirer at least four weeks' notice, to adjust the time rates so as to reflect changes in Aggreko's own cost of goods, materials, fuel and labour.

14.2          Aggreko reserves the right to charge a cancellation fee of up to 25% of the weekly hire rate for orders that are cancelled.

14.3          Invoices must be disputed within 10 days of the invoice date.

15                Calculation of operating hours

 

15.1          The hirer shall submit an accurate statement of the number of hours the machine has worked each day to Aggreko for each working week. If the machine is operated by an operator from Aggreko, the hirer or its representative shall sign the operator's time record sheets daily or weekly, and the signature of the hirer shall bind the hirer or his representative to accept the hours shown on the time record sheets.

16                Insurance and accidents

16.1          The hirer shall be responsible at his own expense for insuring the machines and his self against all and any risks in respect of the machines, including theft, vandalism, fire, flood and any risks arising from the presence or operation of the machines on or at the site. Such insurance shall be maintained from the time when the machines are delivered to the site until the machines are removed from the site. Any insurance monies recovered by the hirer in respect of such risks shall, to the extent deemed necessary by Aggreko, be applied as directed by Aggreko.

16.2          Evidence of the hirer's insurance shall be supplied by the hirer to Aggreko forthwith on request by Aggreko.

16.3          If the machines are involved in any accident resulting in injury to persons or damage to property, immediate notice must be given to Aggreko by telephone and confirmed in writing. No admission, offer, promise of payment or indemnity shall be made by the Hirer without Aggreko's written consent.

17                Rehiring/subletting

 

17.1          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 clause.

17.2          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.

18                Training

 

18.1          The hirer acknowledges and accepts that he has entered into this agreement without relying on guidance, advice or warranties from Aggreko.

19                Force majeure

 

19.1          Aggreko shall have no liability for, nor for any direct or indirect consequence of, any delays or performance failures on its part that are attributable to force majeure. 

20                Breach of contract, cancellation and termination

 

20.1          The agreement can be terminated with immediate effect if:

(i)         the terms of the agreement are not observed,

 

(ii)        the hirer does not pay any outstanding amounts to Aggreko at the proper time, or

 

(iii)       is regarded as insolvent or is placed under compulsory liquidation.

21                Recall of the machines

 

21.1          Aggreko can freely recall the machines upon 30 days’ written notice.

22                Indemnification/damages

 

22.1          The hirer is liable for any loss or damage, including personal injury, property damage and economic loss, as well as consequential losses, loss of use and indirect losses inflicted on Aggreko, employees, third parties or users of the equipment.

22.2          Aggreko may not be held liable for such damage unless the company or its employees have acted with gross negligence. Aggreko is not liable for indirect losses under any circumstances.

22.3          Aggreko’s liability for damages is limited to a maximum of the combined hire revenue Aggreko received from the hirer for the machines. This does not apply if Aggreko has exhibited gross negligence, and this has resulted in personal injury or death.

23                Exclusion of warranties

 

23.1          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.

24                Confidentiality

 

24.1          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.

25                Resolution of disputes and choice of law

 

25.1          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.

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

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