Free Equipment Hire Agreement Template

EQUIPMENT HIRE AGREEMENT

United Kingdom  ·  England And Wales  ·  Commercial Hire  ·  SGSA 1982 · PUWER 1998

This Equipment Hire Agreement (this "Agreement") is made on 2026-05-06 between Northfield Plant Hire Ltd (Reg. No. 09284571) of Unit 7, Cranmore Industrial Estate, Sheffield, S9 2FT (the "Owner") and Ashcroft Construction Ltd (Reg. No. 11428376) of Unit 3, Orchard Business Park, Leeds, LS12 2DR (the "Hirer"). The Owner agrees to hire the Equipment described below to the Hirer, and the Hirer agrees to take the Equipment on hire, on the terms set out in this Agreement. Each party is entering into this Agreement in the course of its business. Title to the Equipment remains at all times with the Owner; this Agreement is a bailment by way of hire and not a sale, hire-purchase or conditional sale.

The "Equipment" comprises: JCB 3CX Sitemaster Backhoe Loader (2022) with extending dipper, hammer circuit and front quickhitch (serial / identification number JCB3CX-2022-SHF-00412), having a stated replacement value of £65,000. The Owner confirms that, at the commencement of the hire, the Equipment is in good working order, properly serviced and fit for purpose and (where applicable) meets the requirements of the Provision and Use of Work Equipment Regulations 1998 (PUWER), and that it conforms to the implied terms of title, description and satisfactory quality under sections 6-9 of the Supply of Goods and Services Act 1982. The Hirer shall inspect the Equipment on delivery or collection and shall notify the Owner in writing within 24 hours of any defect, shortage or damage; failing such notice, the Hirer shall be deemed to have accepted the Equipment in the condition described.

The hire commences on 2026-05-06 and ends on 2026-06-17 (the "Hire Period"). The Owner shall deliver the Equipment to the Site at Unit 3, Orchard Business Park, Leeds, LS12 2DR (Site office: Plot 14, Phase 2 — Orchard Gardens Development) on the start date, and the Hirer shall return it to the Owner (or make it available for collection) at the end of the hire period. If the Hirer fails to return the Equipment on the end date, the hire shall be extended on a day-to-day basis at the applicable rate until the Equipment is returned to the Owner's possession, without prejudice to the Owner's other rights and remedies (including under the Torts (Interference with Goods) Act 1977 ss.12-13). Risk in the Equipment passes to the Hirer on delivery or collection (as applicable) and remains with the Hirer until the Equipment is returned to, and accepted by, the Owner.

The Hire Rate is £450.00 per week. All figures are exclusive of VAT, which shall be added at the prevailing rate. A delivery / collection charge of £180.00 is payable. A refundable security deposit of £2,000.00 shall be paid by the Hirer before delivery. The deposit is held against loss, damage or unpaid charges and shall be refunded within 14 days of return of the Equipment in acceptable condition, less any agreed deductions. Hire charges are payable weekly in advance.

The Hirer shall: (a) use the Equipment only for its designed purpose and strictly in accordance with the manufacturer's instructions; (b) keep the Equipment at the Site (or such other place as is notified to the Owner in writing) and not remove it from the United Kingdom without prior written consent; (c) not alter, modify or part with possession of the Equipment, nor sub-hire or sub-let it; (d) not create or permit to subsist any lien, charge, pledge or other encumbrance over the Equipment; (e) grant the Owner reasonable access at all reasonable times to inspect, test, service or recover the Equipment; and (f) at all times display clearly any plates, labels, serial numbers and notices of ownership affixed by the Owner. As a bailee for reward, the Hirer owes a duty to take reasonable care of the Equipment and bears the legal burden of explaining any loss or damage (Houghland v R. R. Low (Luxury Coaches) Ltd [1962] 1 QB 694; Coggs v Bernard (1703) 2 Ld. Raym 909).

The Hirer shall comply with all applicable health-and-safety legislation in connection with its use of the Equipment, including the Health and Safety at Work etc. Act 1974 (ss.2, 3 and 6) and the Provision and Use of Work Equipment Regulations 1998 (PUWER) — in particular reg.4 (suitability), reg.5 (maintenance), reg.6 (inspection), reg.7 (specific risks), regs 8-9 (information and training), and reg.11 (dangerous parts). The Owner confirms its duties under section 6 HSWA 1974 as a person supplying articles for use at work, and shall supply such information, manuals and training materials as are reasonably needed to ensure the Equipment will be safe and without risks to health when properly used. The Hirer shall ensure that all operators are competent, trained and (where required) certificated.

The Equipment shall be operated only by employees or contractors of the Hirer who are competent, trained and (where required by law) certificated. The Hirer is responsible for ensuring compliance with all health-and-safety legislation (including PUWER 1998 and, where relevant, LOLER 1998) during operation.

The Hirer shall, at its own cost, maintain throughout the Hire Period: (a) all-risks insurance on the Equipment against loss and damage, for its full replacement value for not less than £65,000; and (b) public-liability insurance with a limit of indemnity of not less than £5,000,000 per claim. The Owner's interest shall be noted on the all-risks policy. On request, the Hirer shall provide an original or certified copy of the policy and schedule. Neither party shall do anything that would invalidate or prejudice any insurance policy maintained in connection with this Agreement.

The Owner shall carry out periodic servicing and any statutory inspections (including PUWER reg.6 inspections). The Hirer shall carry out daily pre-use checks, fuel, lubrication, tyre / track pressure and consumables. Following notification of any breakdown or defect, the Owner shall respond to a reported breakdown within 24 hours (excluding weekends and bank holidays), and shall repair the Equipment or provide a reasonably equivalent replacement. No charge shall accrue in respect of any period during which the Equipment is unavailable to the Hirer as a result of a fault not caused by the Hirer's breach of this Agreement.

The Hirer is responsible for all loss of or damage to the Equipment from delivery until return, excluding fair wear and tear arising from proper use. If the Equipment is lost, stolen or damaged beyond economic repair, the Hirer shall pay the Owner the full replacement cost of new equivalent Equipment (stated replacement value: £65,000). The Hirer shall report any loss or theft to the police and to the Owner immediately and provide a crime-reference number. Until paid in full, hire charges shall continue to accrue.

Title to the Equipment remains at all times with the Owner. The Hirer shall not represent itself as owner, sell, charge, pledge, lease or otherwise dispose of the Equipment; any such purported dealing shall be void. The Hirer shall notify the Owner promptly of any claim, distress, execution, process or other step affecting the Equipment and shall take reasonable steps to protect the Owner's interest. The Hirer acknowledges that the Bills of Sale Acts 1878 and 1882 do not apply, as title does not transfer under this Agreement. If the Equipment is wrongfully detained or converted, the Owner may exercise any and all remedies available under the Torts (Interference with Goods) Act 1977, including the uncollected-goods procedure (ss.12-13).

Either party may terminate this Agreement immediately by written notice if the other party (a) commits a material breach that, if capable of remedy, is not remedied within 7 days of written notice requiring its remedy; (b) becomes insolvent, enters administration, compounds with its creditors or is the subject of a winding-up petition; or (c) ceases or threatens to cease to carry on business. In addition, the Hirer may terminate on not less than 7 days written notice to the Owner. On early termination by the Hirer other than for the Owner's material breach, the Hirer shall pay the hire charges that would have been payable for the remainder of the Hire Period as a genuine pre-estimate of the Owner's loss (Cavendish Square Holding BV v Makdessi [2015] UKSC 67). On termination for any reason, the Hirer shall immediately make the Equipment available for collection by the Owner; failing which the Owner may enter any premises where the Equipment is reasonably believed to be, on reasonable notice, and repossess it.

Without prejudice to any other right or remedy, if the Hirer fails to pay any sum due on the due date, the Owner shall be entitled under the Late Payment of Commercial Debts (Interest) Act 1998 to: (a) statutory interest at 8% above the Bank of England reference rate; (b) fixed compensation (£40 up to £1,000, £70 up to £10,000, £100 above £10,000) under section 5A; and (c) reasonable recovery costs in excess of that fixed sum under section 5A(2A). Payment shall be made without deduction or set-off.

UK Late Payment Reform (forthcoming): The parties acknowledge the UK Government's late-payment reform package announced on 24 March 2026, which will (once in force, expected late 2026 / early 2027) cap payment terms imposed by a large Hirer on a smaller Owner at 60 days (reducing to 45 days), render the 8% statutory interest mandatory and incapable of contractual exclusion, deem invoices accepted if not disputed within 30 days, and confer enforcement powers on the Small Business Commissioner. To the extent any term of this Agreement becomes inconsistent with that statutory regime, the statutory regime shall prevail.

Subject to the paragraph below, the Owner's total aggregate liability arising out of or in connection with this Agreement (whether in contract, tort (including negligence), for breach of statutory duty or otherwise) shall not exceed a sum equal to the total hire charges paid under this Agreement. The Owner shall not be liable for indirect, consequential, special or pure economic loss, including loss of profit or loss of business opportunity. Nothing in this Agreement limits or excludes liability for: (a) death or personal injury caused by negligence (UCTA 1977 s.2(1)); (b) fraud or fraudulent misrepresentation; (c) breach of implied terms as to title; or (d) any other liability that cannot be excluded or limited as a matter of law. The parties agree that the foregoing limitations are fair and reasonable having regard to the guidelines in section 11 and Schedule 2 of the Unfair Contract Terms Act 1977.

Data protection: Each party shall comply with its obligations under the UK GDPR and the Data Protection Act 2018 as amended by the Data (Use and Access) Act 2025 (Commencement No. 6 Regulations SI 2026/82, in force 5 February 2026) in respect of personal data processed under this Agreement. Where CCTV, telematics or GPS-tracking technology is fitted to the Equipment, the Owner shall act as controller and shall provide a privacy notice on request; where the Hirer uses such data for its own purposes, the Hirer shall act as an independent controller. Any international transfer of telematics, location or operator-personal-data shall be made only in accordance with Chapter V UK GDPR and shall be assessed by reference to the "data protection test" introduced by Schedule 7 of the DUA Act 2025 (whether the recipient regime is materially lower than the UK standard, replacing the previous "essentially equivalent" test).

Telematics + automated decision-making: Where the Owner uses telematics, GPS or other automated profiling on Equipment data (driver scoring, geofencing, automated late-return charging or similar), the Owner shall comply with the automated decision-making and profiling regime under Articles 22 to 22D UK GDPR as reformed by section 80 of the Data (Use and Access) Act 2025 (in force 5 February 2026 under SI 2026/82). Where a "significant decision" is taken based solely or predominantly on automated processing, the data subject (operator) shall receive (i) information about the decision, (ii) the right to make representations, (iii) the right to obtain human intervention, and (iv) the right to contest the decision. The Owner shall not use Equipment telematics data to train, fine-tune or otherwise improve any AI / ML model offered to third parties without the Hirer's prior written consent.

Anti-bribery: Each party warrants that it shall comply with the Bribery Act 2010 (in particular ss.1, 2, 6 and 7) and shall not offer, give, solicit or accept any financial or other advantage in connection with this Agreement. Modern slavery: Each party warrants that it shall comply with the Modern Slavery Act 2015 (including s.54 where applicable) and that there is no modern slavery or human trafficking in its supply chains or any part of its business.

Each party that is a UK-registered company, limited liability partnership, registered overseas entity or other body registered or required to be registered at Companies House warrants that: (a) each of its directors, members (in the case of an LLP) and registrable Persons with Significant Control ("PSCs") has had their identity verified with Companies House (whether directly or via an Authorised Corporate Service Provider) under sections 1110A to 1110F of the Companies Act 2006 as inserted by section 62 of the Economic Crime and Corporate Transparency Act 2023; (b) the identity verification regime commenced on 18 November 2025 (voluntary phase from 8 April 2025) and the 12-month transition for existing directors and PSCs concludes in mid-November 2026; (c) the signatory executing this Agreement on its behalf has the authority to do so and, where required by law, has personally completed identity verification under the above regime. A material misstatement (i) is a material breach of this Agreement, (ii) may constitute an offence under section 1112 Companies Act 2006 and (iii) may amount to a "relevant offence" for the purposes of section 199 ECCTA 2023.

Each party warrants that, where it constitutes a "large organisation" within the meaning of section 199 of the Economic Crime and Corporate Transparency Act 2023 (meeting at least two of: ≥250 employees, >£36m turnover, >£18m balance sheet), it maintains reasonable fraud-prevention procedures as required by that section (in force 1 September 2025) and that neither it nor, to its knowledge, any "associated person" within the meaning of s.199 has committed a "relevant offence" in connection with this Agreement, the Equipment or the hire fees. Each party shall promptly notify the other if it becomes aware of any actual or suspected fraud connected with the Equipment, hire-charge invoicing, deposit handling or insurance claims.

Before commencing court proceedings (other than for urgent injunctive or equivalent relief, or recovery of the Equipment), the parties shall attempt in good faith to resolve any dispute by mediation in accordance with the CEDR Model Mediation Procedure. If the dispute is not resolved within 30 days of the commencement of mediation, either party may commence proceedings in the courts of England and Wales.

Entire agreement: This Agreement constitutes the entire agreement between the parties in respect of its subject matter and supersedes all prior negotiations and representations, save that nothing limits liability for fraud. Variation: No variation is effective unless in writing and signed by or on behalf of both parties. Waiver: No failure or delay in exercising any right operates as a waiver. Severance: If any provision is or becomes invalid, it shall be deemed modified to the minimum extent necessary; the remaining provisions shall continue in full force. Assignment: The Hirer shall not assign or sub-contract this Agreement or any of its rights or obligations without the Owner's prior written consent. Notices: Notices shall be given in writing and shall be deemed received on delivery by hand, on the next business day after first-class post, or on transmission where sent by email to the addresses above. Third-party rights: A person who is not a party has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term. Counterparts: This Agreement may be executed in counterparts, including by qualified electronic signature.

This Agreement and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with it shall be governed by and construed in accordance with the law of England and Wales. The parties irrevocably submit to the exclusive jurisdiction of the courts of England and Wales.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated.