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FEATURE HIRE EQUIPMENT


FAIR WEAR AND TEAR? W


hen you hire or lease a car your hiring company’s expectations are


well understood. As a driver you’re aware that from restoring bodywork damage to refilling the tank there are costs you are likely to be responsible for at the end of the term. This understanding isn’t as widespread when it comes to renting forklift trucks where confusion over ‘fair wear and tear’ puts companies renting trucks at a risk of large and unexpected end-of-contract repair bills and acrimonious disputes. Heated discussions over what is fair


wear and tear and what is excessive damage can spoil what had been a good working relationship between owners and hirers of the equipment. As a customer you need to be aware of


two important things to avoid added costs: you are financially responsible for any repairs outside of normal ‘wear and tear’ on top of your contract hire fees. When forklift trucks are damaged it often costs much more to fix than you might expect. A truck may be on hire for periods of five years (or more) and during this time predictable deterioration (wear and tear) will naturally occur. Importantly, this term refers to a truck being used in accordance with the manufacturer’s guidelines. It should not under any circumstances be confused with damage which is caused by misuse or abuse.


THE COST OF THE PROBLEM The way fork lift trucks are designed means that when damage occurs it often results in commensurate damage to other, often more expensive components. A truck’s exterior for example, normally protects its hydraulic and electronic systems. When this is compromised,


Fair wear and tear of forklift trucks can result in unexpected large bills when contracts come to an end. FLTA chief executive Peter Harvey explains what you can do to protect yourself


DO: l Have a written hire agreement that you have read and understand.


l Check truck on delivery, recording any damage or deficiencies.


l Confirm that you and your hiring company have copies of the same handover certificate.


l Ensure all operators are aware of how to operate and look after the vehicle.


l Establish and maintain a system of recorded pre-use/pre-shift checks.


l Deal with faults and damage as they occur. Do not allow them to deteriorate.


l Ensure the truck is serviced in accordance with the manufacturer’s requirements


l Make operators and supervisors aware of the costs resulting from damage.


more valuable items are at risk. Equally, safety-related structures (ie overhead guards) often cannot legally be repaired. Replacement prices vary but damage could well cost several thousand pounds. Seats are among the most frequently abused items. While genuine wear is accepted at the end of a contract, holes and rips are not. They are chargeable damage and fitting a replacement will cost several hundred pounds. Repair costs can quickly add up even


when repairing or fitting less expensive options. Like any business, forklift truck hire companies must cover their overheads which include valuable service engineer time.


AVOID THE PITFALLS Knowing how fork lift truck hire works including the options available and potential problems is key to preventing surprises when contracts come to a close. The FLTA Good Hire Guide explains types of hire, terms and the advantages and


Heated discussions over what is fair wear and tear and what is excessive damage can spoil a good working relationship between owners and hirers of the equipment


DON’T: l Hire a truck on verbal agreement. l Allow untrained personnel to operate the truck.


l Authorise operations on unsuitable ground or in unsuitable areas.


l Permit overloading. l Ignore inappropriate use. l Neglect unwanted drips of oil and


other fluids (these are symptoms of something more serious developing).


l Overlook minor bodywork scratches (the tell-tale sign of a careless operator.


disadvantages of purchase and hire in an easy-to-understand way. Available exclusively from FLTA


Members, the guide is illustrated with examples of ‘excessive damage’ and offers valuable guidance to hirers (see box above.)


FLTA T: 01635 277579 www.fork-truck.org.uk


MANUFACTURER MEETS CUSTOMER DEMAND WITH FLEXIBLE VEHICLE HIRE The company’s growing customer base means that team members in


Manufacturer, supplier and installer of steel and timber products Fabrifen has made significant savings across its business after turning to Northgate for all-inclusive flexible vehicle hire. The company has experienced rapid growth which has resulted in its customer base and service requirements expanding. Fabrifen previously owned its vehicles outright but the ageing fleet brought problems including an increased requirement for service, maintenance and repair (SMR) and a reduction in reliability. Fabrifen has saved more than £6,000 a year thanks to the reduction in


maintenance, acquisition and administration costs brought about by Northgate’s all-inclusive package. A key requirement for Fabrifen’s expanding business is the ability to meet varying client demands which vary based on season and often touch every point of the manufacture, supply and installation journey, requiring consistent customer service.


16 MARCH 2016 | FACTORY EQUIPMENT


the field need to be supported across a larger geographical area. Northgate has 8 branches in the North West and a further 69 located across the UK, ensuring that Fabrifen can be supplied with vehicles of varying sizes on both a regional and national basis within a short timeframe. As well as SMR costs a major issue with an ageing fleet is the propensity for the vehicles to break down, causing disruption to the supply chain and harming customer service. Through its partnership with the AA Northgate provides customers with a fully inclusive breakdown service with a replacement vehicle being provided if a vehicle needs to be recovered and a target of less than 2.5 hours of downtime.


www.northgatevehiclehire.co.uk / FACTORYEQUIPMENT


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