Sub-Hire Context
Sub-hire under the Equipment Hire Agreement
Avenida Australia may source equipment through its own equipment pool, supplier network, third-party equipment owners or other hire companies. Where equipment is sourced through a third-party supplier, the arrangement may be treated as a sub-hire or third-party supplied hire for the purpose of the Equipment Hire Agreement.
This page does not replace the Equipment Hire Agreement. It is intended to provide a clear website summary of possible sub-hire conditions, possible third-party supplier costs and potential responsibilities that may apply where equipment is not owned directly by Avenida Australia.
Sub-hire is covered in Clause 7 of Avenida Australia’s Equipment Hire Agreement. Where equipment is sourced through a sub-hire or third-party supplier, Clause 6.6(s) may also apply to reasonable documented costs, surcharges or rate increases imposed by the original supplier.
Clause 7
7. Sub-Hire Conditions
7.1 The Hirer must not sub-hire the Equipment without the prior written consent of the Owner.
7.2 If sub-hire is permitted, the Hirer remains fully responsible for the Equipment and compliance with this Agreement.
7.3 Any unauthorised sub-hiring will result in immediate termination of the Agreement and legal action to recover damages.
Clause 6.6(s)
Third-party supplier costs
6.6(s) The Hirer acknowledges that where the Equipment is sourced through a sub-hire or third-party supplier, any unforeseen additional costs, surcharges or rate increases imposed by the original supplier may be passed on by the Owner to the Hirer, provided such costs are reasonable and supported by documentation.
This may include costs that arise after the original quotation, during the Hire Period, during off-hire, during collection or during post-hire inspection, where those costs are connected to the third-party supplier’s requirements or documented charges.
Application
When sub-hire conditions may apply
Sub-hire conditions may apply where Avenida Australia arranges equipment through another hire company, equipment owner, supplier, dealer, service provider or third-party fleet operator.
These conditions may also apply where the equipment is delivered, serviced, inspected, collected, repaired, replaced or recovered by a third-party supplier acting in connection with the hire.
Possible sub-hire scenarios
- Equipment is sourced from a third-party owner or supplier.
- Equipment is arranged through Avenida Australia’s supplier network.
- Equipment is not owned directly by Avenida Australia.
- Delivery, collection, servicing or inspection may be performed by a third party.
- A third-party supplier may impose specific site, access, return, cleaning, damage or off-hire requirements.
- A third-party supplier may impose costs or charges that sit outside the original hire rate.
Possible Costs
Possible third-party costs, surcharges and rate changes
Where equipment is sourced through a sub-hire or third-party supplier, possible additional costs, surcharges or rate increases may be passed on to the Hirer under Clause 6.6(s), provided such costs are reasonable and supported by documentation.
| Possible item |
When it may apply |
How it may be treated |
| Additional hire charges |
Where the Hire Period extends, off-hire is delayed or the third-party supplier applies a different hire calculation. |
May be passed on where reasonable and supported by supplier documentation. |
| Rate changes or surcharges |
Where the original supplier imposes a rate increase, surcharge or additional charge connected to the hire. |
May be passed on under Clause 6.6(s), where reasonable and documented. |
| Delivery and collection |
Where third-party transport, site access, waiting time, re-delivery, failed pickup or after-hours collection may be required. |
May be charged where incurred and supported by the supplier, transport provider or delivery record. |
| Site access and delays |
Where inductions, escort requirements, gate delays, access restrictions or site-specific procedures may affect delivery or pickup. |
May be treated as an additional cost where not specifically included in the original agreement. |
| Cleaning or contamination |
Where equipment is returned with mud build up, coating residue, oil, grease, contamination or foreign substances beyond fair wear and tear. |
May be charged in line with Clause 2.9, Clause 2.10 and the post-hire assessment process. |
| Damage rectification |
Where equipment is returned damaged, incomplete, misused or in a condition beyond fair wear and tear. |
May be charged in line with Clause 2.6, Clause 5, Clause 6 and Schedule 1. |
| Missing items |
Where keys, hoses, leads, manuals, log books, attachments, accessories or components supplied with the Equipment are not returned. |
May be charged in line with Schedule 1, section 4.4. |
| Fuel |
Where the Equipment is supplied full and returned with less than a full tank. |
May be charged in line with Clause 4.7, Clause 4.8 and Clause 4.9. |
| Continuing hire charges |
Where damage, delayed return, misuse or breach causes the equipment to remain unavailable. |
May continue in line with Clause 5.6 and Schedule 1, section 6. |
| Environmental or contamination costs |
Where spills, leaks, pollution, contamination or environmental harm may arise during the Hire Period. |
May be charged in line with Clause 6.6(o), Clause 6.6(p), Clause 6.6(q) and Clause 6.6(r). |
Standards
Possible supplier standards and requirements
Where equipment is sourced through a third-party supplier, that supplier may require certain standards, return conditions, inspection procedures, access requirements or documentation. These may vary depending on the type of equipment, the original supplier, the location, the site and the hire arrangement.
Possible requirements may include
- Pre-hire and post-hire condition reporting.
- Daily operator logs, maintenance checks or usage records.
- Manufacturer operating requirements.
- Qualified operator requirements.
- Site access, delivery, collection or off-hire procedures.
- Return in clean, complete and hire-ready condition.
- Evidence of insurance or authority to operate.
- Immediate notification of breakdown, abnormal operation, overheating, damage or malfunction.
These possible requirements align with the Hirer’s existing obligations under Clause 2, Clause 4, Clause 5, Clause 6 and Schedule 1 of the Equipment Hire Agreement.
Return Condition
Damage, cleaning, return and off-hire
Where equipment is sub-hired or sourced through a third-party supplier, return condition may be assessed by Avenida Australia, the third-party supplier or both. The Hirer may remain responsible for the Equipment until it is returned, collected or off-hired in accordance with the applicable hire arrangement.
Cleaning, rectification, repair, missing items, damage and downtime may be assessed under the Equipment Hire Agreement and may also be affected by documented third-party supplier assessment, where applicable.
Relevant agreement references
- Clause 2.6 covers post-return inspection, documentation and invoicing for damage or excessive wear.
- Clause 2.9 requires the Equipment to be returned clean and free from contamination, excessive soiling or foreign substances beyond fair wear and tear.
- Clause 2.10 allows reasonable labour, materials, consumables, third-party services and associated downtime to be charged where Equipment requires cleaning, rectification or repair beyond fair wear and tear.
- Clause 5.6 covers hire fees and consequential loss resulting from downtime due to misuse, damage, unauthorised repairs or delays in return.
- Schedule 1 sets out the fair wear and tear and damage assessment process.
Insurance and Risk
Insurance, liability and risk
The Hirer may be required to maintain comprehensive insurance coverage throughout the Hire Period, including public liability, equipment damage and theft insurance sufficient to cover the full replacement value of the Equipment, as set out in Clause 6.1.
Where equipment is sourced through a third-party supplier, the Hirer may still remain responsible for the Equipment, including loss, theft, damage, misuse, environmental harm, contamination, replacement value, claims, liabilities, costs and expenses where the Equipment Hire Agreement applies.
Relevant agreement references
- Clause 6.1 covers comprehensive insurance requirements.
- Clause 6.3 covers indemnity for claims, losses, damages, costs and expenses arising from use, possession or operation of the Equipment.
- Clause 6.5 covers full replacement cost for Equipment that is lost, stolen or damaged beyond repair.
- Clause 6.6 lists circumstances where the Hirer may bear full financial responsibility for repairs or replacement.
- Clause 6.7 covers responsibility and indemnity for injury to persons or damage to property related to the use of the Equipment during the hire period.
Acceptance
Acceptance and written confirmation
Where a hire involves sub-hire or third-party supplied equipment, Avenida Australia may request written confirmation that the Hirer accepts the applicable hire terms, sub-hire conditions, potential supplier requirements and any reasonable documented third-party costs that may arise under Clause 6.6(s).
Acceptance may occur by signing the agreement, accepting the quote, issuing a purchase order, taking delivery, collecting equipment, continuing to use the Equipment or confirming acceptance by email, where applicable.
