Blue Hat Equipment Rental Agreement
- All equipment herein named and identified under the subdivision designated as “Equipment” in the Equipment Rental Agreement (“Agreement”) and any additions thereto are included within the definition of “Equipment” in this lease. Unless otherwise specified, Lessee will erect and dismantle the Equipment and provide the operator for the Equipment. Lessor expressly DISCLAIMS ANY WARRANTY, EXPRESS OR IMPLIED, STATUTORY, BY OPERATION OF LAW OR OTHERWISE, INCLUDING MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE with respect to the Equipment. Lessor shall in no case be liable for any cost, claims, or actions arising out of the use of Equipment, including, but not limited to, the costs of any down time or for any failure in the operation of the Equipment or for any loss of profits or for any direct, indirect or consequential damages arising from bodily injury or property damage or economic loss.
- The Equipment shall remain personal property and title to and ownership of the Equipment at all times shall be and remain in Lessor, notwithstanding possession and use by Lessee. Title to all parts, materials and supplies furnished to the Equipment shall vest in Lessor. At the request of Lessor, Lessee will execute any and all financing statement or other documents Lessor may desire executed by Lessee to protect or demonstrate Lessor’s title to the Equipment. Nothing which the parties may do, including, but not limited to the delivery of purchase invoices for the Equipment, shall be deemed to pass title to the Lessee until and unless title is formally passed by the execution and delivery of a bill of sale by Lessor to Lessee after full payment of any agreed purchase price. No option to purchase or other agreement shall be construed as a conditional sales contract, and Lessee shall give Lessor immediate notice in the event any Equipment is levied upon or becomes liable to seizure from any cause.
- Equipment shall be delivered in good operating order. Lessor agrees to replace all parts which may be found to be defective if notified of such defect within three (3) days from the date of delivery; said warranty being limited to replacement of actual part or piece of equipment only, FOB location, not including cost of labor for removal or replacement or any other costs occasioned thereby, and only if in Lessor's sole opinion such defect is found to be in manufacture or design and not caused by misuse, improper handling or lack of maintenance. The acceptance of the Equipment by Lessee, receiving delivery without objection to the Equipment, exercising any dominion over same, or making any use of the Equipment constitutes acknowledgment by Lessee that this lease is a valid and binding contract and the Equipment is good, safe, serviceable, and fit. Lessee agrees that the provisions of this paragraph shall not limit the effect and extent of Lessor’s warranty disclaimers in Paragraph 1 of these terms and conditions.
- Lessee agrees to pay the rentals on the Equipment for the minimum period set forth in the Agreement or until this lease is terminated, whichever period is longer. Upon the conclusion of said minimum rental period, this lease and all of its provisions may be extended by mutual consent of the parties, provided, however, that Lessor may terminate for Lessor’s convenience any such mutual extension of this lease upon fourteen (14) days written notice to Lessee.
- Subject to Lessee’s liability to Lessor for rent for the Equipment for the minimum rental period, as set forth in the Agreement, the rental period for the Equipment shall begin upon the Rental Commencement Date specified or when the Equipment is in possession at the designated location by Lessee or its agents, whichever is first to occur, and shall end when the Equipment is received by Lessor at its yard in Kansas City, Kansas or at a point designated by Lessor in accordance with Paragraph 8(f) of these terms and conditions. The Lessee shall pay rental for each article of Equipment named in the subdivision designated “Equipment” in the Agreement at the rates indicated for each piece of equipment, and payment shall be made in advance in the office of Lessor at 240 South 65th Street, Kansas City, KS 66111. If the rental period is weekly, then payments shall be due on the first day of each week, and if the rental period is monthly, then payments shall be due on the first day of each month. Should Lessee delay taking delivery after the stated delivery date, Lessor may terminate this Agreement without liability.
- The Lessee hereby agrees to report to Lessor any overtime operation for the Equipment and to pay Lessor for such overtime operation at the same time Lessee’s next rental payment for straight time operation is due. Lessor may use the equipment hour meter to establish the amount of overtime operation to the extent Lessee fails to accurately report the amount of overtime operation.
- The Lessee hereby agrees that:
(a) The rental rates set forth herein shall not be subject to any deduction by, or credit to, Lessee on account of anydowntime or non-working time of the Equipment during the rental term. The amount of rent payable for any fraction of a month or week after the end of the minimum rental period shall be in accordance with Lessor’s schedule for pro-rated payments, which is available from Lessor upon request;
(b) Daily rental rates shall not be subject to deduction for any non-working time in the day and shall be paid for each calendar day in the month in advance. The amount of rent payable for any fraction of a day after the end of the minimum rental period shall not be prorated if a daily rental rate is paid for Equipment, but instead, rental payment shall be made for the entire day upon which the Equipment is returned; and
(c) Any sums due Lessor, which are not paid as and when due, shall bear interest at the rate of one- and one-half percent (1.5%) per month.
8. Lessee covenants and agrees to:
(a) Assume responsibility for all risk of loss or damage to the Equipment from the time Lessee or its agents take possession until it is returned to the care, custody and control of Lessor or its freight carrier for return delivery. Indemnify Lessor against loss resulting from damage to the Equipment. Lessee shall, at its cost, provide all-risk and Inland Marine/Equipment Floater insurance with Boom and Overload coverage for the value of the rented equipment and such insurance shall name Lessor as the loss payee. Lessee shall furnish Lessor a certificate of such insurance;
(b) Display on the Equipment at all times a plate or stencil in the following words: “Blue Hat”;
(c) Permit the Equipment to be operated and serviced safely, carefully and only by persons specially qualified to do so, grease, oil, keep in proper adjustment and otherwise maintain and service the same and keep the Equipment in efficient operating condition at Lessee’s expense, and if replacement parts should be necessary or desired Lessee agrees to purchase them from Lessor or from any person, firm, or corporation designated by Lessor. Lessee shall coordinate with Lessor prior to any repair on the Equipment. If the Equipment goes down for unscheduled or non-routine servicing or repairs while in Lessee’s service, then Lessee shall notify Lessor and Lessor shall repair it or will provide Equipment to replace it. If Lessor determines in good faith that the required servicing or repairs is Lessor’s responsibility, then the transportation costs, travel time, mileage, labor, and parts for the repair or replacement and other associated costs required for repair (“Repair Costs”) will be provided at no charge to Lessee. However, if Lessor determines in good faith that any servicing or repairs are due to any reason other than Lessor’s negligence, and thus, is Lessee’s responsibility, then Lessee agrees to pay, within thirty (30) days from receipt of Lessor’s invoice, all applicable Repair Costs, even if service is performed by Lessor upon return of the Equipment. If the Equipment is returned with a major component unusable, rent continues until repair or replacement can be completed;
(d) Pay all taxes and assessments which may be levied or assessed against or in respect of the Equipment, the transfer, possession, or use of the Equipment by Lessee or against Lessor, including any ad valorem, sales, use, consumer’s or transportation tax to which Lessor, Lessee, or the Equipment may be subjected by reason of this lease;
(e) Defend, indemnify, and hold Lessor harmless from and against any and all claims, loss, cost, liability, personal injury, damage or expense, including attorney’s fees, in any manner connected with or arising out of the maintenance, use, transportation, repair, erection, or operation of the Equipment, however arising, including personal injury to the operator of Equipment;
(f) Return the Equipment at the termination of this lease in the same condition as when received (with a usable hoist line for cranes), ordinary wear and tear excepted, without concrete splatter and if necessary perform any service work to put the Equipment in the condition required by this lease, and if Lessee fails to perform such work, Lessee shall pay to Lessor the cost of the repairs immediately on receipt of a statement from Lessor identifying the same;
(g) Pay rental to Lessor at the specified rate after return of the Equipment by Lessee for that period of time required to make repairs and perform service work to put the Equipment in the condition required by Subparagraph (f);
(h) Keep and maintain accurate lubrication records, repair records, and records of actual hours and rates of operation in the form prescribed by Lessor;
(i) Pay all costs, expenses and reasonable attorney’s fees that may be incurred or paid by Lessor in enforcing the covenants and agreements in this lease; and
(j) Maintain, at its sole cost and expense, during the entire term of this Agreement, the following insurance coverage: Lessee General Liability Insurance must be provided with limits of at least $1,000,000 per occurrence and $2,000,000 aggregate. Auto Liability Insurance must be provided with a combined single limit of at least $1,000,000. Workers Compensation Insurance must be provided with statutory coverage and Employers Liability with limits of at least $500,000. Umbrella/Excess Insurance must be provided with limits of at least $2,000,000 each occurrence and in the aggregate; provided, however, such coverage limits must be at least $5,000,000 each occurrence and in the aggregate for cranes and Magni equipment with capacity greater than RTH 6.30 SH or an HTH 16.10. Coverage shall be excess of General Liability, Automobile Liability and Employers Liability.
Additional Insurance Requirements:
- Blue Hat shall be included as an Additional Insured on General Liability, Auto Liability and Umbrella/Excess policies. Additional Insured status shall be on a primary and noncontributory basis. For General Liability, Additional Insured status shall be per form CG 2028 04/13 or an equivalent form approved by Blue Hat.
- To the extent allowed by law, A Waiver of Subrogation shall be included under all policies in favor of Blue Hat.
- Policies shall provide 30 days’ notice of cancellation to Blue Hat.
- Certificate(s) of Insurance must evidence Additional Insured status, primary & non-contributory wording, waiver of subrogation, and notice of cancellation to Blue Hat.
Contractor’s Leased/Rented Equipment Coverage:
- Coverage limit shall be equal to, or greater to, the value of the equipment as identified on lease agreement.
- Blue Hat shall be included as Loss Payee. Policy shall include no overload exclusion or boom restriction.
- Policy shall provide 30 days’ notice of cancellation to Blue Hat.
The insurance certificate must show a description of the equipment, the value of the equipment, confirmation of no overload exclusion or boom restriction and 30 days’ notice of cancellation to Blue Hat. If Lessor furnishes the operator for the Equipment, Lessor will furnish evidence of workers compensation insurance covering the operator.
9. Lessee further covenants and agrees that it will not:
(a) Assign rights granted herein, further sublet the Equipment or suffer or permit it to be used by others, or remove the same or any part of the Equipment from the location of the “Job Address” designated in the Agreement without the prior written permission of Lessor;
(b) Remove numbering, lettering or insignia from the Equipment, alter the same, or affix attachments to the Equipment, without first having obtained Lessor’s written consent;
(c) Suffer or permit the Equipment to be seized or affected by attachment, mortgage, lien or legal process or do or permit anything else which may encumber, impair or cloud Lessor’s title to the Equipment; and
(d) Use the Equipment beyond its capacity, or in any other manner abuse or improperly use the same.
10. Lessee shall pay all transportation, freight, loading and unloading charges from the present location of the Equipment to the work site of the Lessee and for the return of the Equipment as provided in Paragraph 5 of these terms and conditions. Lessee shall furnish, in writing, to Lessor, shipping instructions, provided, however, if such instructions are not furnished to Lessor, Lessor shall ship the Equipment in the manner Lessor believes to be the most reasonable under the circumstances. In the event Lessor desires the Equipment forwarded to any point other than Lessor’s yard in Kansas City, Kansas, then the Lessee shall pay the freight and loading charges to such point designated by Lessor together with any unloading charges incurred at such point, but in no event shall the amount exceed the normal freight rate and loading and unloading charges on shipment from the Lessee’s jobsite to Lessor’s yard in Kansas City, Kansas.
11. If Lessee shall fail to punctually pay rent due hereunder or otherwise breaches this Agreement and such failure shall continue for five (5) days after notice thereof from Lessor, Lessor may terminate this lease without any other or further notice to Lessee, and, in addition to any other remedies allowed by applicable law, Lessor shall have the right to (a) take possession of the Equipment, (b) recover from the Lessee all rental payments and other sums due and to become due Lessor from Lessee and the amount of any damages, injuries, and expenses, including attorney fees, incurred in repossessing and returning the Equipment to Lessor’s yard and satisfying Lessee’s obligations under this lease, and (c) enter upon the premises where the Equipment is located at the time and take possession of the Equipment, with or without legal process, and remove the Equipment. Lessee agrees to protect, defined, indemnity and hold Lessor harmless with respect to any and all damages or claims of damages occasioned by any such entry, repossession, or removal and to pay Lessor all costs, expenses and damages, including court costs and attorney fees, incurred by Lessor by reason of any (a) refusal to permit Lessor, or (b) inability of Lessor to enter upon such premises and take possession of and remove the Equipment. If and at any time after a legal proceeding shall have been commenced involving or affecting the Equipment or title to the Equipment, or if Lessee shall become bankrupt or insolvent or seek or suffer appointment of a receiver to take charge of Lessee’s property or affairs, then and upon the occurrence of such an event, Lessor may terminate this lease instantly and without notice and Lessor shall have all the rights following a default accorded to Lessor under the first two sentences of this Paragraph 11. Nothing done by Lessor under this paragraph shall terminate or discharge Lessee’s obligations under this lease.
12. Lessor shall have the right at all reasonable times to enter the premises where the Equipment is located, and Lessee hereby guarantees Lessor free access to this location, for the purpose of inspection. If any inspection, whether during the continuation of this lease or after the Equipment has been returned to Lessor, shall disclose any loss or damage to the Equipment, Lessee shall pay the amount of such loss or damage to Lessor immediately on notification by Lessor of the amount of the loss or damage.
13. Any notice required or permitted to be given hereunder shall be in writing and shall be served if sent by United States Certified Mail, Federal Express, or UPS with confirmation of delivery. If to Lessor, such notice shall be addressed to Lessor at its office, 240 South 65th Street, Kansas City, KS 64111, or at such other place as may be designated from time to time in writing by Lessor. If to Lessee, such notice shall be so mailed and addressed to Lessee at its office at the address in the Agreement.
14. If at any time required by Lessor, the Lessee at its own expense shall furnish a bond in the amount of the value of the Equipment, with sureties satisfactory to Lessor to insure compliance by Lessee of all its obligations under this lease. Additionally, Lessee will provide such information as requested so that Lessor can file a pre-lien notice.
15. This agreement, although not assignable by Lessee, shall be binding on the parties and their respective successors, heirs, administrators, executors and assigns. No modification of this agreement shall be valid or binding unless in writing and signed by both parties.
16. Upon receipt of the Equipment from Lessor, the Lessee assumes responsibility for the following service items:
(a) Completion of all preventive maintenance checks and services that come due during the operation of the Equipment. This includes service of all fluids and filters at the proper intervals and in accordance with manufacturer’s guidelines. For Lessor to service the equipment, the cost will be $2.00 per hour up to 250 hours of operation, and anything past 250 hours of operation will be charged at $2.50 per hour.
(b) Completion of all periodic inspections and adjustments in accordance with the manufacturer’s guidelines and as dictated by condition of equipment operation.
(c) Completion of all repairs deemed minor by Lessor, for example hose replacement, belt replacement and minor electrical component repair/replacement. Lessor will supply the parts for these repairs.
(d) Lessee shall provide documentation of all such servicing and repairs to Lessor upon completion of such service or repairs.
17. Lessor assumes no responsibility for labor back charges or other costs or damages due to equipment downtime.
18. Lessee waives any claim against Lessor for consequential damages arising out of or relating to this Agreement.
19. Lessee waives all rights against Lessor and its employees for damages caused by fire or other causes of loss to the extent covered by property insurance carried by Lessee. Lessee waives any claim against Lessor for damage to Lessee’s work arising out of this Agreement.
20. Lessee agrees that in the event of any strike, picket, sympathy strike, work stoppage or other form of labor dispute or picket in connection with the location on which the Equipment is to be used the Lessee will provide a picket free entrance for Lessor.
21. All disputes arising from this Agreement shall be determined in accordance with the laws of the State of Missouri. Lessee hereby agrees the courts of Jackson County, Missouri shall be the forum for resolution of disputes arising out of this Agreement.
22. Except as otherwise mutually agreed in writing, this Agreement is the complete agreement of the parties and supersedes all other agreements or understandings, written or oral.
Blue Hat – Inclusions, Exclusions and Standards for Quotes
Note: Bare rentals are based upon a 176-hour, 28 day month. Additional hours of use will be billed prorated; Customer will be responsible for insurance, taxes, labor, fuel, and maintenance on all bare rental equipment.
Note: Mobilization & Demobilization are quoted using straight time rates, overtime operations will be considered as an extra charge. Jobsite must allow access for such operations, and pad for leveling and supporting the crane is the responsibility of others.
Note: Customer is responsible for completion of all preventive maintenance checks and services that come due during the operation of the equipment. This includes service of all fluids and filters at the proper intervals and in accordance with manufacturer’s guidelines. For BH, to service the equipment, the cost will be $2.00 per hour up to 200 hours, anything past 200 hours will be at $2.50 per hour
Note: No crane mats are included in above pricing.
Note: Net 30 days, no retainage. Interest may be charged at the rate of 1.5 % per month (18% annual rate) on past due accounts after 30 days from the invoice date. In addition, you agree to pay all costs and expenses incurred, such as attorney fees, collection agency charges, court cost, in effort to collect past due accounts.
Note: Crane is quoted W/ BH providing the AD director only. Customer is responsible for assembly and disassembly.