VEHICLE, PLANT & EQUIPMENT HIRE
came into force on 1st October this year and the BVRLA’s Conciliation Service, which it has offered for over twenty years, has just recently been approved by the Government as a Consumer ADR body. Under the regulation, only ADR organisations that have been checked and certified to ensure independence by the Trading Standards Institute (TSI) can be used – and the BVRLA’s Conciliation Service has become one of the first in the UK to complete this process. The service is a simple, low cost way to resolve contractual disputes and should give operators even greater peace of mind.
So which deal do you choose? The spot hire solution is often ‘reactive’
– you’ve no spare capacity or there’s an increased work load; you need seasonal cover or maybe you’ve had a breakdown – or the start-up of a new contract needs urgent resources. Whatever the reason, the process is likely to start with a phone call along the lines of “Get it here for 07:30 in the morning” and even the paperwork may follow through later. That flags up the first warning sign, as the vehicle or equipment may arrive and start working before terms and conditions have been scrutinised, let alone understood and signed off. Apart from the ‘quick-fix’, spot hire can
also be a very useful way to test and evaluate equipment. Many of the companies involved in the sector will offer the newest or latest types available … and for manufacturers too, that can be a good way to seed product into new customers through user experience. Spot hire can then stretch into longer term relationships and requirements too.
Commercial philosophies and pricing
structures within the rental business also vary, but overall, there are some fairly standard ball-park industry rates for a particular piece of kit …price differences may be found in what you get. On one hand you have got the bigger companies, who provide new kit and typically look for longer commitments, while at the other end of the spectrum you have the much smaller guys who will often provide older or refurbished kit – and it will be cheaper. However, if you choose a cheaper to hire refurbished machine, you might save hire costs – but expect to pay higher
maintenance – or worse still, risk downtime. Alternatively, you might opt for new equipment at a higher rate, but pay less maintenance. It’s your call! In the waste business, different types of kit
also reveal different whole life cost profiles. Refuse collection vehicles, for instance, may have a five year first line operating life, at the end of which they will have a pretty low residual value. Hook loaders and sweepers by contrast, appear to retain comparatively higher residual values. With spot hire, it is normal to expect charges for consumables or damage –
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SHM December 2015/January 2016 Issue 121
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