Always Get It in Writing!
The companies that make up a typical construction project — including contractors, suppliers, and equipment rental companies — are beset by financial challenges. One of the most significant of these is the struggle to simply get paid the money they’ve earned, in full and on time.
While there are many tools and best practices to help manage projects payments that are available to the industry, one of the most effective tools is also the simplest: get everything in writing.
That’s why we’ve created this equipment rental agreement template – to help the industry’s equipment renters make sure they’re getting all of their work in writing.
Click on the link above to download a simple, easy-to-use equipment rental agreement template that should work well for the majority of your jobs or projects. The template is in an MS Word format so you can easily edit it to suit your needs.
Equipment Rental Companies Have Their Own Set of Payment Issues
One of the biggest challenges equipment rental companies face is having their equipment moved from jobsite to jobsite, unbeknownst to them. When a piece of rental equipment gets moved to another jobsite, it can present a number of different challenges, from the practical (just the difficulty of trying to keep tabs on the equipment) to the legal (this scenario can make it difficult to manage lien rights).
Another big payment challenge for equipment rental companies has to do with determining whether they have mechanics lien rights in the first place. As we’ve discussed in a previous post, while equipment rental companies generally have mechanics lien rights, on certain construction projects, or in certain states, sometimes there is no black and white answer. In some states, the answer may depend on whether the equipment lessor also furnished labor. In other states, access to lien rights depends on whether the equipment lessor identifies as a subcontractor.
The bottom line, however, is that equipment rental companies would be best served to act as is they are protected in all situations and use the preliminary notice and mechanics lien process to secure the amounts owed to them.
Oh, and of course, using a good contract and getting your work in writing won’t hurt either!