Wet Hire Agreement
A Wet Hire Agreement is a document used to outline the terms of an agreement for the rent of equipment and hire of services, typically for construction jobs.
4.8 (5 reviews)
Last updated January 14, 2025
Under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
This differs from a dry hire agreement, which only involves the hire of equipment. This agreement allows Contractors to maintain control over any equipment hired, and clarifies when Hirers may be liable for the damage, loss, or alteration of the Equipment. This agreement also clarifies the Hirer’s entitlement to the equipment and services throughout the hire period, and under what terms a project may be delayed, extended, or cancelled.
Use this Wet Hire Agreement if:
- You are a business in Equipment and Service hire
- You wish to ensure that Agreements with clients are clear
What does this document cover:
- The terms of Equipment and Service Hire
- Contractors and Hirers obligations and entitlements under the Agreement
- Provisions for Insurance and Indemnity of the Parties
- Application of the Personal Properties Securities Act (PPSA) to the Agreement
The Legal Risk Score of a Wet Hire Agreement Template
Our legal team have marked this document as low risk considering:
- The document allows the Contractor to retain ownership and control over the equipment, limiting the Hirer's ability to use, modify, or relocate the equipment without express permission, which could restrict operational flexibility.
- Payment obligations are strictly enforced with penalties for delays, and the Contractor has significant rights in the event of default, potentially placing financial strain on the Hirer if cash flow issues arise.
- The Equipment must only be operated by the Contractor, which could lead to dependency on the Contractor's availability and potentially impact the project timeline if the Contractor faces delays or staffing issues.
Wet Hire Agreement Checklist
Complete your free Wet Hire Agreement with our checklist
Verify Equipment and Schedule Details
Ensure that all details about the equipment, hire fee, and hire period are accurately listed in the Schedule to avoid discrepancies during the rental period.
Sign and Obtain Copies
Both parties should sign the agreement and each retain a copy to ensure that both have legal proof of the terms and conditions agreed upon.
Review Compliance Requirements
Review all operational, safety, and legal requirements mentioned in the agreement to ensure full compliance throughout the hire period.
Plan for Return and Inspection
Schedule the return of the equipment and plan for its inspection to ensure it meets the conditions for return as stipulated in the agreement, including cleanliness and maintenance state.
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