As the construction industry begins to recover from a down market, rentals of project equipment are on progress. You may very well be renting equipment for use on an upcoming project whether you are an owner, principal contractor, or specialty trade subcontractor. Here are significant points to remember by AXIS Capital, Inc., a group of companies headquartered in Grand Island, Nebraska (This company is a Direct Lender providing quality equipment leasing/financing services along with superior customer service. The company also serves Southeast Asian countries such as KL Malaysia, Jakarta Indonesia, Bangkok Thailand, Singapore and many more.)
Warning! Do not acknowledge the equipment without systematically examining it first. If you do not do a full visual and utility inspection on a rental product could mean that you may be held accountable for present damages or defects in the equipment. If a defect is not documented previous to receipt of equipment, it will be your word in contradiction of the lessor’s—and the lessor is possible to have advantageous contract language on its side. The best way to get out of this fight is to conduct a full inspection while taping or taking photos every visual or operational issue with the equipment. Run the inspection in the together with the lessor, offer the lessor with documentation or notes of all present damage, and keep a copy of the documentation. Also be certain to discard the equipment if it does not appear to be completely functional.
Be certain to get insurance coverage for the rental, or confirm in writing that coverage is if not in place. Under the lease agreement, the renter is normally charged with the duty to get insurance coverage for the equipment, both in the name of the renter and the lessor. If you do not have the required coverage in place pursuant to the terms of a lease agreement will mean that you are accountable for any damage or loss of the equipment. It may be a scam at the end, be vary of that.
Make certain your operating team is trained on the equipment’s maintenance. Needed maintenance will frequently be spelled out briefly in the rental agreement. If so, be assured to train your team to stand by it. If not, ask the lessor for its optional maintenance in writing. If you neglect to conduct required maintenance, the equipment may be broken and you will be held with a heavy repair bill, or
worse, you may be forced to buy it —whether you want it or not so make sure to do this to avoid complaints afterwards.
Meet the scheduled equipment return due dates. Per most rental agreements, you will be indicted a whole extra day (or week or month, varying on the duration of the rental) if you fail to give back the equipment by the agreed time set forth in the contract. For large pieces of machinery, this could mean a weighty price.
If the equipment runs on gas or diesel, give it back with a full tank. Just like national car rental companies, an equipment lessor can charge you significantly enhanced amounts for fuel if you disregard to “gas up” before you return a piece of construction equipment.
