Most equipment managers need to rent is subject to normal wear and tear, and rental companies take this into consideration when pricing rentals. They assume a certain level of wear and tear based on what they consider a normal amount of time the equipment will be used while rented. Run time beyond this number of hours increases the level of wear and tear the equipment would experience and, therefore, their costs.
As a result, the company might include a maximum number of hours of operation figure in the rental contract. If technicians use the equipment longer than the specified number of hours, the rental company can assess additional charges.
Managers need to review the contract to understand whether it contains a clause on the maximum number of hours of operation, as well as the resulting charges if technicians exceed this number.
Managers also need to examine the dispute resolution clause of the contract covering equipment rental. Disputes arise for any number of reasons. Managers and the rental company can resolve many of them simply by talking.
But some issues might require non-binding mediation, binding arbitration, or even litigation, so managers must be sure contracts specify the desired method of dispute resolution, selection of a neutral third party, and the party responsible for payment.
James Piper, P.E., is a national facilities management consultant based on Bowie, Md. He has more than 25 years of experience in facilities management and maintenance issues.
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