Terms and conditions for a tool and plant hire business

Tool hire puts powerful equipment in the hands of people whose competence you cannot check and whose sites you never see. The terms have to make the hirer responsible for the equipment from the moment it leaves, deal with damage, theft and equipment returned in a different condition, and treat a trade account and a weekend DIY hire differently, because the law does. I draft those terms for a fixed fee of £995, delivered in five working days.

Who this is for

Tool, equipment and plant hire businesses in England and Wales serving trade customers on account and consumers over the counter, hiring anything from a floor sander to a mini digger, delivered or collected.

What matters in tool and plant hire terms

The hirer's responsibility and safe use

From collection or delivery to return, the equipment is the hirer's responsibility. The terms should require the hirer to be competent to use it, to follow the instructions and the safety information supplied, to use it only for its purpose, and not to let anyone else use it. Where equipment needs a trained operator, the terms should say so and give you the right to refuse the hire. As a supplier of equipment for use at work you have your own duty under section 6 of the Health and Safety at Work etc. Act 1974 to supply it safe and with adequate information, and the equipment is work equipment under the Provision and Use of Work Equipment Regulations 1998 in the hirer's hands. Title never passes, and the hirer may not sell, lend or part with the equipment.

Damage, breakdown and wear

The terms should distinguish fair wear from damage, make the hirer liable for damage however caused during the hire, and charge repair at cost and replacement at current value. Breakdown through no fault of the hirer should be met with a replacement or an end to the hire charges, not a claim for the hirer's losses. The hirer must report a fault and stop using the equipment, and must not attempt repairs.

Theft, loss and insurance

Theft from a site or a van is the hirer's loss, and the terms should say so and require the hirer to keep the equipment secure. You can offer a damage waiver or insurance for a charge, or require the hirer to insure; either way the terms should say which, what it covers and the excess. Identification and proof of address at the counter are what prevent equipment being taken under a false name, and the terms should say they are required.

Consumers, trade accounts and what the law adds

For a consumer hire the Consumer Rights Act 2015 requires the equipment to be of satisfactory quality and fit for purpose and the terms cannot exclude liability for injury caused by your negligence; for trade customers the Unfair Contract Terms Act 1977 lets you limit liability if the limit is reasonable. Trade accounts should carry interest and compensation on late payment under the Late Payment of Commercial Debts (Interest) Act 1998 and a right to suspend the account. One document with a consumer section and a trade section keeps the counter simple.

Hire period, late return and charges

The terms should define the hire period, say when charges start and stop, that the hirer pays until the equipment is returned or collected, and that late return continues the charges at the daily rate. Fuel, consumables, cleaning and delivery are charged separately. Off-hire requests should be in writing so that the end of a long hire is not a matter of memory.

What it costs

Customer or supplier terms and conditions, £995. One set of terms, customer-facing or supplier-facing, drafted for your business. Five working days.

Review of your existing terms, £495. You already have terms and want them checked and brought up to date. Returned marked up with my amendments and an explanation of the changes. Three working days.

Buying online forms the engagement on payment. The scope is what the terms and conditions drafting page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• A full set of bespoke terms drafted for your business, reflecting the legal requirements that apply to your business and sector
• A note in plain English explaining the terms I have drafted for you
• Liability, payment, termination and IP provisions that protect your position and are drafted to withstand scrutiny from the other side
• Guidance on how to incorporate the terms properly
• Your questions and comments answered by email or phone
• One round of amendments to finalise the terms ready for use

What is not included

• Negotiating your terms with individual customers (I am happy to quote for this as an additional service if required)
• Sector-specific regulatory compliance beyond the contract terms themselves
• Website privacy notice and cookie compliance, which I quote separately
• Terms governed by the law of another country
• Tax advice

Questions I am often asked

A hirer says the digger was already damaged when they collected it. Whose word counts?

A pre-hire inspection record, signed or photographed at the counter, is what decides it. The terms should require the hirer to inspect the equipment on collection and report any damage before leaving; damage found on return is then the hirer's.

Can I hold a DIY customer to the same damage terms as a builder?

The core is the same, but against a consumer the charges must reflect your actual cost and you cannot exclude liability for injury caused by your negligence. The terms should say that consumer hirers are still responsible for damage and loss during the hire.

What if a trade account customer stops paying?

The terms should give you the right to suspend the account, to require the return of everything on hire, and to charge interest and fixed compensation on the overdue invoices. A retention of title clause is irrelevant here because the equipment is yours throughout.

Related guidance and services

• Terms and conditions drafting, £995, the service this page describes
• Contract review, £495
• Terms and conditions for a portable toilet and generator hire business
• Terms and conditions for a scaffolding company

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: September 2026. Email geoffrey@caesar.co.uk.