Dry hire vs wet hire

Under dry hire, the hire company delivers the machine, and the hirer takes control of it for the hire period. The hirer supplies a licensed or competent operator, usually fuels it, does daily pre-start checks and is responsible for using it safely. Dry hire is common for smaller plant such as scissor lifts, mini excavators, rollers and site dumpers, and for builders with their own operators.

Under wet hire, the hire company supplies the machine and an operator, and often fuel, servicing and transport. The hirer directs the work but the hire company's operator runs the machine. Wet hire is typical for cranes, large excavators, concrete pumps and specialist plant where the operator's skill and knowledge of the machine matter most.

Rates reflect the difference. Dry hire is usually priced by the day, week or month. Wet hire is usually priced by the hour, often with minimum hours, travel and float charges.

• Operator. Dry hire: the hirer supplies and checks the operator's licence and competence. Wet hire: the hire company supplies the operator and their licence.

• Pre-start checks. Dry hire: the hirer's operator. Wet hire: the hire company's operator, though the site still checks the plant is fit for use.

• Fuel and daily servicing. Dry hire: usually the hirer. Wet hire: usually the hire company.

• Damage and insurance. Dry hire: the hirer is often liable for damage while the plant is in its care, so check the damage waiver and your own insurance. Wet hire: shared, depending on the hire terms.

• Site safety. In both cases the head contractor controls the site, so its traffic management plan, exclusion zones, SWMS and permits still apply.

Under the model WHS laws, more than one business can hold duties for the same plant at the same time. The hire company has duties as a supplier, and in wet hire also as an employer of the operator. The hirer has duties as the business with management or control of the plant at the workplace. The head contractor has duties as the business managing the site.

Each must consult, cooperate and coordinate with the others so that nothing falls in the gaps. In practice that means agreeing who does the risk assessment, who inspects and maintains the plant, and who checks licences before the machine starts work. Victoria applies similar principles under its own OHS Act.

The hire agreement sets out the commercial responsibilities, but it cannot contract out of WHS duties. A clause saying the hirer is responsible for safety does not remove the hire company's duties as a supplier.

• Not reading the hire terms. Liability for damage, theft and breakdown varies a lot between hire companies.

• Assuming wet hire covers safety. The wet hire operator still works under the site's rules, SWMS and permits.

• No licence check on dry hire. The hirer must confirm its own operator holds the right licence class.

• Missing hire dockets. Off-hire dates that are not recorded lead to disputes over charges at month end.