A stand down rate is an optional clause in a Hire Agreement. It lets parties opt to give the customer a discount on days when the product being rented out will not be used.

‘Stand down rates’ are most commonly found in Dry Hire Agreements where large expensive machinery is rented out.

For example, if your business were renting out machinery for a construction site for a month, and the customer knew work would not be undertaken on weekends, you could charge the customer 50% of the normal hire price on weekends. 

Another example is if the equipment could only be used in certain conditions, and bad weather meant the customer was not able to use the equipment. The days the equipment could not be used due to wet weather could be billed at a discounted rate, otherwise known as a ‘stand down rate’.

Why Should You Include Stand Down Rates in your Agreement?

Building ‘stand down rates’ into your hire agreement can make your business more attractive for customers, and change the way your equipment is hired, making it more attractive for long term hires for instance.

Here at Sprintlaw, our lawyers are highly experienced in drafting both Wet and Dry Hire Agreements that are tailored to your business’ specific needs. Contact us for a quote for your contract! 
Our friendly legal consultants are available for a free chat on 1800 730 617 or at team@sprintlaw.com.au.

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