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Equipment Rental

Part 1: Equipment Rental Success: Read the Contract

Part 2: Delivery and Installation Considerations for Rental Equipment

Part 3: Terms of Payment Common Issue in Rental Contracts

Part 4: Hours of Operation Important for Pricing Rental Equipment

Delivery and Installation Considerations for Rental Equipment

By James Piper, P.E. - December 2013 - Equipment Rental & Tools

equipment rental, rental rate, contracts


For many smaller, standalone items, delivery and installation are not issues. Maintenance technicians can pick up the equipment at the rental company location and transport it to the work site. But some equipment is not so easy to transport, while other equipment might require specialized setup.

Consider the rental of a temporary boiler or chiller. Both pieces of equipment typically require a specialized vehicle to transport them to the site. Some might remain on a flatbed trailer, while others might require the use of a crane or hoist to put in place. Both require temporary connections to a facility's heating or air conditioning infrastructure, and both require a temporary hookup to a facility's utility systems.

The rental contract must specify the party responsible for transport and setup. If the rental company is responsible, the contract must identify additional charges, if any, beyond equipment rental that will result from delivery and setup. The contract also must specify who is responsible for disconnecting the equipment and returning it to the rental company.

End Of The Rental Period

One of the most common problems, and yet easiest to avoid in rental contracts, is to establish the date and time the rental period actually ends. Customers rent equipment for a set period of time, such as a day or a week. Others need equipment for an unspecified period of time.

Consider the rental of a boiler or chiller again. The customer needs the equipment until repairs are made to the existing system or until the installation of a new system is complete. Managers might be able to estimate that period of time, but too many unknowns exist when the contract is written to specify an end date.

In these cases, the contract must specify exactly the process managers will use to notify the rental company that they no longer need the equipment. Too often, renters simply call the rental company to say they no longer need the unit. But the rental company might not route phone calls to the right person. Days or weeks might go by with nobody coming to pick up the unit. When managers report this problem, the rental company might respond that it was not properly notified and that the customer is responsible for rental charges incurred over that time.

Managers must read the contract carefully to determine the exact process to use to notify the rental company when they no longer need the equipment. Also, the terms of the contract must spell out whether the charges end when the company receives notification or when the equipment is dropped off or picked up.




Equipment Rental

Part 1: Equipment Rental Success: Read the Contract

Part 2: Delivery and Installation Considerations for Rental Equipment

Part 3: Terms of Payment Common Issue in Rental Contracts

Part 4: Hours of Operation Important for Pricing Rental Equipment


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