FTA/BVRLA statement of best practice in commercial vehicle rental and operation

The vehicle hire pledge

The road transport industry is characterised by both the huge amount of legislation that is so rightly placed upon it to ensure that vehicles are operated safely and also by the very tight deadlines to which it operates, which requires operators to only use vehicles with high reliability levels.

This pledge has been developed by the Freight Transport Association and the British Vehicle Rental and Leasing Association to help ensure that these high standards are upheld when vehicles are hired, and to develop best practices to encourage both higher safety standards and also efficiency gains in the sector.

Adoption of the 'pledge' by rental companies will both ensure that they offer a high standard of service to customers and give prospective customers an assurance that both the vehicles they hire and the rental operation are of a high standard. The pledge also outlines the responsibilities assumed by hirers and their drivers and includes a summary of the legal obligations on them. Both parties are therefore aware of the legal constraints that the vehicle must be operated within.

Only by assuming and recognising these responsibilities can both parties realise the full potential of a hire contract, to the mutual benefit of both.

Whilst this pledge is targeted towards the short term hire o vehicles, the issues that it addresses are of equal importance to longer term rental arrangements such as contract hire and vehicle leasing, and companies (whether hire/leasing companies or their customers) engaged in such issues would be advised to ensure that the issues raised in the pledge are addressed to ensure that problems do not occur.

The rental pledge

Implicit in a hire agreements an undertaking by both the hire company and the customer to assume certain responsibilities to ensure that the contract is completed successfully, to the benefit of both parties. At the onset of the contract, it is important that such responsibilities are recognised and acknowledged by both parties. The responsibilities of the hire companies and their customers are outlined below.

The rental company should:

• Make the contractual obligations of the customer clear, in easy to read and understandable language and copy the customer with the terms and conditions of rental
• Ensure that the vehicle is properly maintained, to ensure both legal compliance and reliability. Rental companies should provide customers with a copy of their approved checklist which should be to a minimum standard as set out by FTA/BVRLA, indicating the condition of the vehicle at the time of delivery together with any requested legal information (including a copy test certificate).
• Ensure that it has a procedure for dealing with complaints which should be copied to the customer. Information in the cab should include arrangements for breakdown cover and for contacting the hire company.
• Provide information, available in the cab, on the weight (gross and axle) of the vehicle, its payload and its dimensions. the speed limits for the vehicle should also be clearly displayed.
• Make the customer aware of the procedures of refuelling the vehicle at the end of the hire period, and for any charges that could be incurred, before the hire period commences.

The customer should:

• Advise the rental company of the expected likely hire duration and the mileage.
• Retain a copy of the rental agreement in the cab.
• Make the vehicle available for servicing, etc as arranged with the rental company.
• Declare any cargoes that may be carried in the vehicle for which special arrangements may be required, eg decontamination.
• Use a driver with the relevant licence and appropriate experience . Particular care should be taken with the agency of casual drivers to ensure that such drivers have the relevant skills to drive the vehicles they are assigned.
• Return the vehicle in a comparable standard to when it was taken, subject to fair wear and tear. Any accident or damage to the vehicle should be reported to the rental company as soon as practicable but in any event within 48 hours of the accident/damage.
• Ensure that the vehicle is inspected and its condition accepted by the competent person at commencement and termination of the hire.

Legal compliance

Operators of goods vehicles find themselves operating in one of the most highly regulated sectors of industry. Operators support such regulations in recognition of the importance that they place on ensuring that vehicles are safely operated, and do not endanger drivers, company employees, the environment or the public.

To operate vehicles, companies require an operators licence. When a licence is applied for the applicant is required to declare that he will meet all the legal requirements on him. If any of them are breached, he runs the risk of losing his licence and being prevented from operating vehicles. Even though a vehicle may be hired, the operator of the vehicle remains legally responsible for the condition of the vehicle no matter how short the hire period and, therefore, it is imperative that the following legal requirements are met:

• The operator must hold an operators licence
• Operators wishing to use hire vehicles to increase their fleet should ensure they have a margin on their 0 licence. The operator must undertake to advise the licensing authority of the vehicle on his licence margin is hired for longer than 28 days.
• The vehicle must not be overloaded
• Drivers' hours regulations must be complied with the tachograph properly inspected and calibrated
• All construction and use requirements, along with the testing regulations, must be met

Whilst these requirements are all placed on the customer who operates the vehicle, the rental company should, as a matter of best practice, ensure that it will assist the customer in discharging them. In particular, the rental company will ensure that the vehicle is properly taxed, tested and meets all of the construction and use requirements. The rental company should also be able to advise the customer on the gross and axle weights of the vehicle along with any special features on procedures associated with its operation. Rental companies should also be able to advise the customer whether the vehicle needs to be covered by an operator's licence. Only by utilising this partnership approach, can customers be sure that they are meeting all of the requirements on them.

Click here for FTA/BVRLA recommended minimum pre-rental check list.

Last updated: Fri Oct 13 09:36:57 2006