Dewatering, Groundwater, Drainage, Hyrdogeology, Water, Treatment, Remediation, Industrial, HDPE, Pipeline, Pigging, Jetting, Flushing, Filtration, Overpumping, Bundle, Pump, Temporary, Power, Generator, Air, Compressor, Tower Light, UAE, Dubai, Abu Dhabi, KSA, Jeddah, Dammam, Riyadh, Qatar, Doha, Bahrain, Manama

This Agreement is made between Action International Services L.L.C. (hereafter called the "Lessor") which expression shall where the context so admits include its successor and assigns on the one part and the hirer named herein (hereafter called "Customer") on the other part. The Lessor will let the Customer take on hire upon the terms and conditions hereinafter mentioned the goods more particularly described in the description hereto (hereinafter called the "Equipment").

 

1. EQUIPMENT OWNERSHIP

All plant, machinery, and Equipment procured or owned by the Lessor rented by the Customer shall at all times remain the property of the Lessor. The Customer acknowledges they shall make no claim whatsoever for ownership of these assets.

 

2. INSPECTION

The Customer shall inspect Equipment upon delivery and shall notify the Lessor in writing immediately of any defects thereof failing which it shall be agreed that Equipment is in good order and fit for the purpose for which it is required, free of defects and satisfactory to Customer.

 

3. PAYMENT & RATES

1) Customer shall pay to Lessor on demand:

     (a) All rental, mileage, transportation, fuel, service and other sums payable under this Agreement.

     (b) All import/export duties incurred.

     (c) All amount payable exclude VAT and the Customer, at its sole expense shall be responsible for all taxes such as VAT or sales taxes, withholding       taxes and any similar indirect taxes imposed or applicable at date of this agreement or introduced and made applicable by legislation thereafter       whether in retrospect or not, on the counterparty in connection with supply of goods and services. “VAT” means Value Added Tax in accordance         with the provisions of the proposed respective countries VAT legislation where we operate.

     (d) All legal costs incurred in enforcing any terms of this Agreement.

2) Advance Payment – Subject to Action’s standard Credit Policy approval.

3) Rental Payment - The Customer’s payment to the Lessor shall be based on monthly invoice, submitted by the Lessor to the Customer. The invoice shall be deemed as certified and/or approved if not disputed with reasonable justification by the Customer within five (5) days from the date of invoice. Any disputed amounts shall be resolved and approved within (10) days thereafter. The Customer shall pay the Lessor within thirty (30) days from the date of the invoice unless specifically agreed otherwise in writing. There shall be no “back to back” payment arrangement in relation to the Customer’s payment terms or contract conditions with any other party/entity.

4) Transportation charges (whether for delivery to Customer, return or repossession of Equipment) including loading assembling and dismantling charges shall be paid by Customer.

5) Customer shall pay interest at 3% per month on any sum payable under this Agreement from the payment due date up to the actual date of payment.

6) The hire period shall commence from the time when the Equipment leaves the Lessor's depot and shall continue until the Equipment is received in good working order back at the Lessor's named depot. The minimum period of hire shall be seven

(7) days, unless specifically agreed otherwise in writing.

 

4. PERMITTED USER

Equipment shall be used solely by Customer for Customer's business and kept only at the place of delivery under this Agreement and shall not be moved without the written consent of Lessor. Equipment shall be used only within its rated capacity and by competent trained personnel. Customer shall maintain and provide to Lessor, upon request, records of personnel using the Equipment along with the particulars of the use.

 

5. PROHIBITED USES

The following use of Equipment (hereinafter called "prohibited uses") is strictly prohibited:

(a) Any storage, use, operation, transportation of Equipment in violation of any applicable laws.

(b) Any removal, alteration or modification of identification registration marks on the Equipment.

(c) Any alteration to Equipment, or removal of any component from Equipment.

(d) Any use or operation of the Equipment in excess of its rated capacity.

(e) Any operation of the Equipment inconsistent with the manufacturers' recommendations.

(f) Any operation or transportation of Equipment such as to cause, or likely to cause, any collision with overhead installations or objects.

 

6. THEFT, LOSS, DAMAGE, DESTRUCTION

The Customer shall be responsible for loss or damage to the Equipment either from theft, fault, negligence or carelessness by the Customer (or any other third party).

 

7. OTHER OBLIGATIONS OF CUSTOMER

(a) Customer shall provide access to the Equipment for the Lessor to inspect the same at all times.

(b) Customer shall not sub-lease, assign or mortgage / charge or lien the Equipment or this Agreement to any persons or third party.

(c) Customer shall obtain all necessary licenses & permits and comply with all applicable laws and regulations and pay all taxes / rates and other charges in respect of this Agreement.

(d) Full manufacturer's machinery specifications and operations manuals for the Equipment can be provided upon request.

(e) Vertical and horizontal movement of all Equipment on site,

(f) Accommodation, food, office facility/space on site, transportation to site from accommodation and vice versa, necessary general labours for installation, and other essential requirements to allow the Lessor to execute installation and supervision works, if required.

 

8. SERVICE/ REPAIR

The Customer at its own cost shall keep Equipment in good order (including performing regular and basic servicing, adjustments and lubrication of Equipment in particular, but not limited to; daily checking of engine oil and cooling systems).

 

9. TERMINATION

1) The Lessor shall have the right to immediately suspend operations/works or terminate this Agreement and demobilize all of its equipment on site, without liability, for any of the following

reasons:

     (a) Non-payment of any sum payable under this Agreement within 21 days after due date.

     (b) Customer fails to observe or perform any of his obligations under this Agreement.

     (c) Customer, being an individual shall die, suffers an act of bankruptcy. If a company, any petition winding-up or judicial management is filed into

     court or Customer makes an arrangement or Deed Assignment or otherwise compound with its creditors or distress or execution is threatened

     and or levied upon or against Customer or Equipment or Customer permits any judgment against it to remain unsatisfied for 7 days.

     (d) Customer does or permits any acts endangering the Equipment.

     (e) Customer abandons Equipment.

2) In case of termination or prolonged suspension of operations/works, the Customer shall (within three (3) days from receipt of a written demand by the Lessor) return all rented materials, plant and Equipment. Failing to do so, the Lessor shall be free to remove its materials, plant, and Equipment from site without any restrictions, and that the Customer shall remain liable to compensate the Lessor for the completed operations/works valued at the agreed rate under the Agreement including the cost of demobilization.

3) Termination shall be without prejudice to any remedies or claims which Lessor has under this Agreement in particular Customer shall pay or indemnify Lessor for:

     (a) All expenses incurred by Lessor in tracing or repossessing the Equipment or for enforcing Lessor's rights hereunder.

     (b) Any liability to third parties.

     (c) Rentals in arrears and rentals payable for the remainder for the rental term.

4) Customer shall remain liable for Equipment notwithstanding such termination until return to or repossession of same by Lessor.

 

10. LESSOR'S OBLIGATIONS

If Equipment received is found in an unfit condition or fails to operate properly, Lessor may do either of the following:

1) Repair or replace the Equipment, upon notification or discovery of such event, provided the Customer shall remain liable for rental and other sums payable under this Agreement not withstanding such repair or replacement

2) Remove the Equipment and subsequently terminate this Agreement. In such instances providing there is no breach of this Agreement by the Customer the Lessor may refund any rentals money paid in advance for the unexpired rental term.

3) The Lessor shall be responsible to implement his own standard safety and quality control protocols and procedures (such as providing personal protective equipment for workers & safeguards for equipment). The Lessor is free to coordinate his safety procedures with other works on site.

 

11. INSURANCE

1) Unless agreed otherwise in writing, the rented Equipment has not been insured by the Lessor. The Customer shall be responsible for taking out insurance covering the usual risks, including damage as a result of the loss, theft and destruction of the rented Equipment, as well as against damage caused by the use of rented Equipment.

2) A valid copy of insurance documentation covering the above terms and conditions should be made available to the Lessor upon request.

 

12. DIESEL FUEL & OIL

All diesel fuel and oil required shall be provided by the Customer. The diesel and oil grade must be in line with the Equipment manufacturers' specifications (which can be found in the Lessor’s website: www.action-is.com). Any loss or damage caused to the Equipment due to the use of substandard grade fuel will be fully charged to the Customer.

 

13. INDEMNITY

Customer shall fully indemnify and hold harmless the Lessor, it's subsidiary and affiliated companies, their offices, agents and employees against the claim, demand loss, liability, and expense, including fines, penalties, and liabilities imposed on Lessor, consequential loss and legal costs on full indemnity basis by reason of:

1) Any personal injury including death and property damage sustained by a person (s) including employees of Customer whether due to the negligence of Lessor or Customer, their employees or agents or otherwise.

2) Violation of any law or regulation affecting the use, operation, storage or transportation of Equipment by Customer, its agents or employees.

3) Breach of any provision of this Agreement.

 

14. FORCE MAJEURE

The Customer shall be liable under or in connection with this Agreement to the extent that any failure to perform and/or delayed performance of any of its obligations has been caused or contributed to by a force majeure event or circumstance including Acts of God, war, terrorism, civil disturbance, government action, strikes, or any other event or circumstance beyond the reasonable control of the parties.

 

15. ARBITRATION

All disputes or disagreements arising out of or in connection with the formation, performance, interpretation, nullification, termination or invalidation of this Agreement, must be resolved through both the Lessor and the Customer’s best efforts in good faith to reach a reasonable and equitable resolution prior to the initiation of any arbitral proceedings. The parties agree that in the event that a dispute cannot be resolved amicably, then the dispute shall be referred to, and finally be resolved by arbitration in accordance with the Dubai International Arbitration Centre (DIAC) Rules of Arbitration. The language of the arbitration shall be English and the venue of any proceedings shall be in Dubai, United Arab Emirates.

 

16. SMALL CLAIMS TRIBUNAL

As an alternative to clause 15 (Arbitration), should the Lessor elect to do so, any dispute, difference, controversy or claim arising out of or in connection with this contract, including (but not limited to) any question regarding its existence, validity, interpretation, performance, discharge and applicable remedies, shall be subject to the exclusive jurisdiction of the Courts of the Dubai International Financial Centre (“the DIFC Courts”).

 

17. ENTIRE AGREEMENT

This Agreement expresses the entire Agreement between the Lessor and Customer. It contains all the terms agreed between the parties except such variations as shall be agreed in writing by the parties and supersedes all prior negotiations, representations, or agreements, either written or oral.

 

 

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