Terms of Sale
1.Purpose
1.1 This agreement regulates conditions for renting machines, equipment, and more from Energy Rent AS (“Energy Rent”). If other conditions are to apply than those appearing in this agreement, these must be recorded in writing and included in a separate agreement document where these lease terms are attached and form part of the lease terms.
1.2 The lessee is responsible for reading and understanding these terms. Unless otherwise agreed/notified in writing, the terms are deemed accepted.
1.3 The lessee acknowledges and agrees to have entered into the lease agreement without being dependent on guarantees from Energy Rent beyond these terms.
2. Definitions
2.1.1 Lessor means Energy Rent as the lessor of equipment.
2.1.2 Rental Agreement means these rental terms and conditions and the individual rental agreement. In the event of any conflict between these documents, these Lease Terms and Conditions shall apply.
2.1.3 Equipment means the equipment and/or object specified in the purchase order, which the lessor must, in accordance with the lease, rent out to the lessee.
2.1.4 Lessee means the party which is not the lessor, as specified in the individual purchase order.
2.1.5 Delivery date means the date when equipment will be delivered, as described on the purchase order.
2.1.6 Purchase order means an individual equipment order, issued by the lessee by the lessor’s prices for equipment.
2.1.7 Lease period means the period during which the lessee will rent the equipment, in accordance with the purchase order. Rental costs run from the time the equipment leaves the warehouse until it is returned to the warehouse, regardless of the purchase order.
2.1.8 Preparation of equipment (mobilization and demobilization) means physical preparation of equipment in storage during normal working hours.
2.1.9 If there is a significant need for planning, dimensioning, parts ordering, project organization, transport, personnel, follow-up, and similar needs, this is charged in hours according to the current hourly rates. Essential need means work that exceeds 3 hours, during normal working hours.
2.1.10 The customer is obliged to provide connections at their own facility. In cases where Energy Rent has to arrange connections, manifolds, fuel hoses, water hoses, steam hoses, ventilation, fixed piping, and similar connections, costs for materials, work, transport, dimensioning, and planning are added. In the case of urgent orders, we reserve the right to consider the best available solutions in the given time frame.
2.1.11 Agreement on a fixed price and price estimate, means work and transport carried out during normal working hours. Overtime and express transport will be billed as extra.
3. Assembly, disassembly, commissioning, and return
3.1 Upon delivery
Energy Rent AS is always responsible for installation and commissioning, unless otherwise agreed upon in writing.
If the customer is responsible for assembly and commissioning, then the equipment, immediately upon delivery, is considered to have been handed over and the customer bears the risk. This also applies in the case of a written agreement on installation and commissioning. Unless Energy Rent has received a written notification to the contrary within four working days of taking over, all equipment is deemed to have been delivered on time and in accordance with the rental contract.
3.2 Upon return
Energy Rent AS is always responsible for dismantling and inspection unless otherwise agreed upon in writing.
The equipment is checked and tested upon return. In the event of errors, deficiencies, and dirty equipment, Energy Rent will make the necessary quality measures. This will be billed to the customer.
If there is a written agreement that the customer is responsible for disassembly, a receiving inspection corresponding to the preparation costs is added. If preparation costs are not present, this will be invoiced according to a fixed sum, equal to NOK 12,500 excl. VAT.
If there is no written agreement that the customer is responsible for disassembly, a receiving inspection fee, a fixed sum equal to NOK 25,000 excl. VAT + hours worked and all direct and indirect costs in connection with testing the equipment in stock are added.
4. Ownership of the machines
4.1 The machines are and will at all times be the property of Energy Rent, and the lessee will have no right, or claim to own any share in the machines. The lessee must not remove or destroy any signs or markings on the machines that show that Energy Rent is the owner of the machines. The lessee must keep the machines free from, and without any and all forms of attachment, enforcement, seizure, arrest, pawn, right of retention, right of security, and encumbrances. The lessee must immediately notify Energy Rent of such encumbrances. The tenant must indemnify Energy Rent against all losses, damages, costs, and expenses that arise as a result of non-compliance with this point.
5. Use of the equipment
5.1 The lessee is responsible for that the user of the equipment will make himself familiar with the attached user manuals and applicable rules, regulations, and maintenance routines before the equipment is put into use.
5.2 The equipment must be used exclusively for the tasks and purposes for which it is intended, and it must be treated with care.
5.3 The lessee must ensure that the machines are not used for purposes beyond their rated performance or in a way that can be assumed to cause the machines to deteriorate (except for normal wear and tear). The lessee must keep themselves informed about the condition of the machines and must not use them when they are broken, damaged, in dangerous conditions, or in a condition that leads to a breach of any applicable laws or regulations.
5.4 The lessee is obliged to provide qualified personnel. For security reasons, Energy Rent reserves the right to send qualified personnel for inspection at the renter’s expense. This applies in particular to equipment such as includes gas plants with outlets in the liquid phase and steam boilers.
6. Personnel from Energy Rent AS
6.1 If the machines are delivered with an operator from Energy Rent, he must work under supervision and according to instructions from the lessee or their representatives. The lessee is responsible for turning away and or reprimanding the operator if it is discovered that the applicable regulations for safety, health, and the environment are not observed or if the operator’s behavior is inappropriate or offensive. Energy Rent must be informed in writing of such matters. The lessee must not allow other people to operate the machines without first obtaining written consent from Energy Rent.
6.2 All work, including travelling time, is invoiced according to hours spent. NOK 1290,- ex. VAT for fitter, NOK 1410,- ex. VAT for service technician and NOK 1610,- ex. VAT for service engineer during normal working hours. The lessee covers travel costs, service car/kilometres and board & lodging etc. in connection with work performed at the company’s current rates. Energy Rent AS reserves the right to work up to 12 hours per day without this being specifically agreed.
6.3 Definition of working hours
– Normal work hours 08.00 to 16.00 Monday to Friday
– Overtime 50% 16.00 to 21.00 Monday to Friday
– Overtime 100% 21.00 to 06.00
– Overtime Saturday 50% to 12.00, 100% after this and until Monday 06.00
– Overtime holiday 100%
7. Access to the machines for maintenance
7.1 The lessee must give Energy Rent employees, clerks, representatives, and insurers access to the machines at all reasonable times in order to check and possibly maintain them. The lessee must make the machines available so that Energy Rent can carry out maintenance or service (whether routine or otherwise) within one week after Energy Rent has notified the lessee that such maintenance or service is to be carried out. During maintenance and inspection, planned downtime of machines may be necessary.
8. Routine maintenance/service
8.1 Energy Rent must, either itself or through an agreement, ensure regular maintenance and service during the agreement period in accordance with Energy Rent’s standard practice.
8.1.1 Fuel, filters, oil, and lubricants, when supplied by the lessee, shall be of a certain quality and type specified by Energy Rent.
8.1.2 The coolant, when supplied by the lessee, must be a mixture of clean fresh water and antifreeze in a ratio and of a certain quality and type specified by Energy Rent.
8.2 The lessee is responsible for covering all costs for consumables such as oil, air filters, oil filters, diesel filters, and Racor filters in connection with service. The lessee also covers work costs, travel costs, board, and lodging in connection with periodic maintenance during the rental period.
8.3 The lessee must himself or through an agreement with Energy Rent or a third party, ensure regular maintenance and service during the agreement period in accordance with Energy Rent’s standard practice.
8.4 Energy Rent can follow up and carry out periodic maintenance on equipment at the lessee’s expense.
8.5 The lessee must be able to account for the hour meter’s reading at all times. This is so that necessary periodic maintenance can be planned and carried out.
8.6 The lessee must notify Energy Rent in writing if there is a need for periodic maintenance on hired equipment. Intervals for periodic maintenance are indicated in the user manual, service manual, and/or in the label/marking on the equipment. If no labeling is available, Energy Rent must be contacted immediately.
8.7 The lessee is responsible for sending a written service report with receipts for filters and oil to Energy Rent as documentation of service carried out by the lessee or a third party.
8.8 If periodic maintenance is not documented and carried out according to given intervals during the rental period, the lessee will be held financially responsible for repairs as a result of this, as well as the costs of the next service. In such cases, Energy Rent can additionally invoice a fee for lack of service of up to NOK 6,000 + VAT. The financial responsibility is limited upwards to the acquisition value of the equipment.
8.9 If Energy Rent, through an agreement, is to carry out service, and fails to carry out service on the machines within one week after Energy Rent was notified in accordance with the provisions of this point, the costs of both the next service and any subsequent repairs as a result of the failure to service must be covered by Energy Rent.
8.10 The customer is responsible for the water quality in the facilities during the rental period. Energy Rent AS has no responsibility during the rental period or after the end of the rental for the water quality and any consequences thereof.
9. Transportation and return of equipment
9.1 Personnel from Energy Rent who assist with loading and unloading must do this as representatives of the lessee and under the tenant’s supervision and instructions.
9.2 The sender of the equipment is responsible for issuing the consignment note / delivery note.
9.3 The lessee is responsible for returning rented equipment when the rental period ends. Regardless of Incoterms, the lessee covers all costs for shipping and unloading to the agreed delivery address with Energy Rent. If equipment or parts of equipment are not returned at the same time, the lessee will be invoiced for the rental of the remaining equipment according to Energy Rent’s current price lists or by further agreement.
9.4 Fuel delivered will not be credited.
10. Stopping of operations
10.1 Energy Rent does not provide compensation as a result of planned downtime to e.g. necessary maintenance and/or inspection.
10.2 If downtime of rented equipment occurs as a result of:
– clogged fuel filters
– contaminated or incorrect fuel – failure or lack of external power supply – lack of reporting or lack of periodic maintenance – wrong use of equipment – incorrect or defective installation by the lessee
the lessee will then cover all costs in connection with the repair and replacement of hired equipment. The lessee is also charged for rent in accordance with the contract during the entire shutdown, as well as during the time for replacements and repairs.
10.3 In the event of downtime as a result of other errors or defects, Energy Rent covers costs in connection with the repair or replacement of equipment (exception of section 10.6).
10.4 If it is practically impossible to repair the machines, and alternative machines are not available, Energy Rent may terminate the rental agreement immediately and will have no liability to the lessee for such termination or any consequences of the downtime, failure, or termination.
10.5 In the event of any downtime or unsatisfactory function of parts of the machines, Energy Rent must be notified immediately. The lessee must not attempt to carry out the repairs on their own, except if Energy Rent has given specific permission to do so.
10.6 If any downtime occurs as a result of events beyond the lessee’s and Energy Rent’s control, the lease will terminate from the time of occurrence of the shutdown, if the lessee does not cover all costs related to putting the facility into operation.
10.7 Costs for replacements and repairs as a result of downtime are limited to 30% of the total value of the lease. The lessee can cover costs beyond this to continue the lease.
10.8 Energy Rent shall do everything practically possible to reduce the time for downtime as much as possible. The lessee cannot organize/order express delivery or other services without Energy Rent’s approval from the seller or management.
11. Energy Rent’s responsibility
11.1 Subject to other terms in the agreement, Energy Rent shall assume responsibility for damage or loss of the machines that arise:
a) before the machines are delivered at the agreed place of delivery if the machines are transported using transport organized or owned by Energy Rent,
b) until the installation of the machines at the place of delivery has been completed and found to be in order, provided that the installation has exclusively been fully checked or carried out by Energy Rent,
c) from the dismantling of the machines starting at the place of delivery, provided that the dismantling is exclusively fully controlled and carried out by Energy Rent,
d) after the machines have been removed from the place of delivery if the machines are transported using transport arranged or owned by Energy Rent.
11.2 When signing an operating agreement, the following is included, unless otherwise agreed in writing.
a) Free phone support during normal working hours
b) In the event of a shutdown, Energy Rent or partners will intervene. This is not covered beyond normal working hours Mon-Fri (08.00-16.00). The lessee is charged for all conditions that are not the fault of the lessor.
12. Prices and payment terms
12.1 Prices are specified in the attached contract and/or are invoiced monthly according to Energy Rent’s currently applicable rates. The minimum rental period is 7 days, unless otherwise agreed upon in writing.
12.2 Rent, purchase, and costs for service and service personnel are invoiced on an ongoing basis unless anything else is agreed upon. Payment terms are defined in Energy Rent’s order confirmation or in a contract/purchase order signed by both parties. Default interest accrues if payment terms are not met.
12.3 Rental rates are invoiced in accordance with the contract. Energy Rent reserves the right to index the rental prices in relation to the market prices for similar equipment for rental periods of more than 6 months. In this case, the lessee must be notified at least 4 weeks before such regulation is carried out.
12.4 Energy Rent reserves the right to charge a cancellation fee of up to 100% of the total remaining rental amount if the equipment is returned before the contract expires. If a confirmed order is canceled by the lessee before delivery, Energy Rent can invoice up to 30% of the total rent for the entire period. In addition, Energy Rent reserves the right to pass on all direct and indirect costs hereunder; hours, materials, ordered products, etc.
12.5 Complaints on invoices must be made within 4 days before the current invoice is due.
12.6 If the lessee wishes to extend the lease period, this must be notified in writing by fax or e-mail within 8 working days before the lease expires. The rental prices remain unchanged when the contract is extended unless the contract states otherwise.
12.7 For call out after working hours, NOK 4,500 excl. VAT is charged and hours are charged according to the applicable hourly rates.
13. Insurance and accidents
13.1 The equipment must be insured throughout the rental period. The customer is obliged to have valid insurance for hired equipment, which covers theft, damage, vandalism, fire, flooding, and other risks as a result of the machines being located or used at or near the place where it will be used.
13.2 The lessee must be able to present valid documentation such as the name of the insurance company, valid policy number, and a confirmation that the insurance value is high enough to cover the equipment’s insurance value at least one week before the start of the rental.
The insurance value can be found in offer/contract.
13.3 If the lessee cannot present a valid insurance contract, the tenant must buy himself out of insurance liability by paying for the insurance waiver. The waiver will then cover the repair of equipment or the cost of replacing equipment as a consequence of such risk. The deductible for each individual event amounts to NOK 30,000 ex. VAT. per component. The deduction cost is defined by Energy Rent, and must be stated in the lease.
13.4 Cable, hoses, and storage equipment such as cable drums or the like are not included in insurance waivers. In the event of the loss of cable or hoses, the tenant will be held financially responsible for the acquisition value of the corresponding lost equipment.
13.5 In the event of negligence by the lessee or a third party, the lessee may be held financially liable, up to the equipment’s acquisition value. Insurance does not apply in the event of negligence.
13.6 If the machines are involved in an accident/mishap that leads to damage to people or property, Energy Rent must be notified immediately by telephone and receive written confirmation of this by fax or e-mail. The lessee must not make any concessions, offers, promises of payment, or compensation without the written consent of Energy Rent.
13.7 The premium for the rental insurance including the environmental fee is currently 10% of the list price (excl. VAT)
14. Further rental / subleasing
14.1 The machines or parts thereof shall not be further rented out, subleased, borrowed, or otherwise made available to a third party without written consent from Energy Rent, and the lessee shall indemnify Energy Rent for any losses, damages, costs, and expenses arising as a result of non-compliance with this.
14.2 The lessee shall not assign the Agreement, any part of the Agreement, or benefits and/or rights under the Agreement to anyone without first obtaining the written approval of Energy Rent. Energy Rent can refuse without any justification.
15. Training / Support
15.1 The lessee is obliged to make themselves familiar with the service and user manual before the equipment is put into use if the operator is not present at all times during use. For guidance and help in the event of any downtime, the lessee can contact Energy Rent’s 24-hour hotline at +47 51 68 88 68.
Training and support during normal working hours are invoiced at NOK 1,290 per started hour. Energy Rent invoices NOK 3,350 per started hour for training and support via the on-call telephone outside office hours.
16. Force majeure
16.1 Energy Rent shall not be responsible for direct or indirect consequences of any delays or non-fulfillment due to force majeure.
17. Breach, cancellation, and termination
17.1 The agreement can be terminated with immediate effect if:
17.1.1 A material breach of the agreement occurs.
17.1.2 One of the two parties is to be considered insolvent or to be treated as bankrupt.
18. Indemnification / Damage compensation
18.1 The lessee is responsible for:
18.1.1 loss and damage to own and subcontractors’ property, and
18.1.2 injury and death to its own and its subcontractors’ personnel, and shall indemnify Energy Rent.
18.2 Energy Rent is responsible for:
18.2.1 loss and damage to its own as well as its subcontractors’ property as long as the lessee pays Energy Rent for exemption from such liability in accordance with article 15.1.
18.2.2 injury and death to its own and its subcontractors’ personnel and shall indemnify the lessee.
18.3 Each party shall indemnify the other party against liability for consequential costs and indirect losses, including loss of income.
18.4 The lessee must indemnify Energy Rent against third-party claims for loss and damage caused by the lessee or its subcontractors.
18.5 Energy Rent shall indemnify the lessee from third-party claims for loss and damage caused by Energy Rent or its subcontractors.
19. Exceptions to guarantees
19.1 Energy Rent guarantees that the machines will not have defects relating to construction, craftsmanship, and material, which may affect the correct and safe operation of the machines, and must remedy such defects that are discovered or occur during the rental period. This does not apply if the error is due to circumstances at the hands of the lessee.
20. Confidentiality
20.1 All information that one of the parties receives about the business of the other shall be confidential and shall not be disclosed to third parties either during the period of the agreement or afterward. Both parties must take the strictest possible precautions to enforce this provision, and the aggrieved party has the right to take all the legal steps it deems necessary, including immediate termination of this agreement, if a breach of this provision is pointed out.
21. Dispute resolution and choice of law
21.1 If a dispute or disagreement arises under this agreement, the parties shall try to reach an amicable arrangement. The lessee cannot withhold more than the disputed amount.
21.2 Any disputes shall be dealt with in accordance with Norwegian law. The correct venue must be the municipality which the equipment is rented from.
22. General
22.1 Note that it is the tenant’s responsibility to notify Energy Rent, before delivery of equipment, if the equipment is to be used/placed near dangerous materials or may be exposed to a lot of dust. Own maintenance routines may apply to use offshore, on ships/boats, in gravel roofs, mines or tunnels, asphalt works, etc.