A stand down rate is an optional clause in a Hire Agreement. It allows parties to offer the customer a discount for days when the product being rented out will not be used.
‘Stand down rates’ are commonly included in Dry Hire Agreements where large, costly machinery is rented out.
For instance, if your business were leasing machinery for a construction project for a month, and the customer knew that work would not proceed on weekends, you could offer a reduced hire price of 50% for those days.
Another scenario could be if the equipment is only operable under certain conditions, and inclement weather prevents the customer from utilising the equipment. On such days, a discounted rate, known as a ‘stand down rate’, could be applied.
Why Should You Include Stand Down Rates in Your Agreement?
Incorporating ‘stand down rates’ into your hire agreement can enhance your business’s appeal to customers, particularly for long-term leases of your equipment.
Here at Sprintlaw, our legal experts are adept at crafting both Wet and Dry Hire Agreements customised to your business’s unique requirements. For a tailored contract quote, don’t hesitate to get in touch!
Our approachable legal consultants are ready for a complimentary discussion at 0800 002 184 or via email at [email protected].
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