Consol Terms and Conditions

Basis of Agreement

This Agreement is based on Periodic Services to be carried out by Hitachi Construction Machinery (Australia) Pty Ltd (“HCA”) or its authorised agent as per the Operation and Maintenance Planner for the contracted machine model and covers only the machine detailed on the attached Service Agreement Summary.

Term of Agreement

This contract is completed when the machine has reached the agreed engine hours or date of termination whichever comes first on the attached Service Agreement Summary.

Customer Responsibilities

The Customer is responsible for the 10 hour, 50 hour, and 100 hour items as shown in the Customer’s copy of the Operation and Maintenance Manual.  If the equipment manufacturer requires an Initial 100, 250 or 500 hour Service in the machine, operation and maintenance manual, this Service is covered by HCA.

Periodic Service Notification

The Customer is to notify HCA a minimum of 21 calendar days before a Periodic Service is due and provide details of any known problems/faults.  The machine’s current operating hours, proposed service location and serial number must be quoted when requesting services. Notifications are to be sent to 1300Hitachi@hcma.com.au.

Repairs & Maintenance other than Scheduled Periodic Services

This Agreement does not include repairs and maintenance of the machine. Should the machine require repairs and maintenance other than the scheduled Periodic Services as stated in the machine’s Maintenance Planner, these will be completed once HCA has been provided with the appropriate approval or order number to carry out the required repairs or maintenance. On completion of the additional repairs or maintenance work the Customer will be billed the HCA standard local rate.

Overtime/Holiday

All Periodic Services are to be performed during a normal HCA working hour day, Monday to Friday. Where Periodic Services are performed, at the Customer’s request, outside the normal HCA working hour day, on a public holiday, or either on a Saturday or Sunday, the local overtime/holiday rate surcharge will be billed and applied as additional costs to the Customer.

Travel Costs

If the attached Service Agreement Summary includes Travel Costs, then the Agreement is based on Periodic Services being performed within the specified Travel Distance stated in the Service Agreement Summary. For the avoidance of doubt, all km’s stated in the Service Agreement Summary will be interpreted as a round trip. Should the machine be moved outside the travel distance stated in the Agreement then the additional travel and delivery expenses will be billed as an additional charge to the Customer.  If travel costs are not included at the commencement of this Agreement, then all travel expenses will be charged as an additional cost to the Customer.

Cleaning and Safe Environment

The Customer is to ensure that the machine is thoroughly cleaned prior to servicing and moved to a safe and suitable location, so that all work required can be performed safely, efficiently and effectively, without risk to the HCA personnel. Should the machine require cleaning by HCA personnel to enable the servicing to be carried out, then the costs of cleaning the machine will be billed to the Customer as an additional cost at HCA standard local rate. The Customer must notify HCA personnel of any hazardous substances or environment that the machine has been exposed to when arranging a service and when HCA personnel attend the service location. HCA personnel may refuse to perform the service should they reasonably believe that it is unsafe to do so.

Machine Availability for Service

If a Periodic Service is arranged by the Customer where HCA personnel arrive to carry out the arranged Service and find the machine is not available at the agreed time for them to carry out the scheduled servicing, then any standby/waiting time incurred by the HCA personnel will be charged as an additional cost to the Customer at the HCA standard local rate. If the Service has been booked outside the normal HCA working hour day or either on a Saturday or Sunday, waiting time incurred by the HCA authorised personnel will be charged as an additional cost at the local overtime rate.

If a Periodic Service is arranged by the Customer where HCA personnel arrive to carry out the arranged Service and find the machine is totally unavailable for them to carry out the scheduled servicing then any travel cost incurred by the HCA  personnel will be charged as an additional cost to the Customer at the HCA  standard local rate. If the Service has been booked outside the normal HCA working hour day, on a public holiday,  or on a Saturday or Sunday, travel cost incurred by the HCA personnel will be charged as an additional cost at the local overtime/holiday rate.

Lubricants

Lubricants included in the attached Service Agreement Summary refers to all fluids and lubricants required for the Periodic Services in this Agreement and shall be supplied by HCA only. Only approved fluids and lubricants will be used at all times.

Oil Top Up

The Customer is responsible for keeping records of the amount of top up oil added to each compartment between oil changes so the amount can be recorded on the oil Sample Sheet for accurate oil analysis. Top up oils must be the same grade and brand as used in the Periodic Services.

Oil Sampling

Oil Sampling will be carried out on the machine covered by this Agreement at each Service interval and the cost of this is included in the Agreement pricing (Bell Trucks are excluded).

Service Reports

HCA will provide a copy of the Service Report to the Customer shortly after the completion of each service.

Machine Usage Reporting

If this Agreement’s billing method is Monthly (see Billing Methods below) then on the 25th day of each month the Customer must notify in writing the hour meter reading of the machine covered by this Agreement as recorded on the 24th day of the current month, to the above-mentioned email address. For equipment fitted with Satellite transmitters, the hour meter reading transmitted at midnight on the 24th day of each month will be used to calculate the monthly invoice value.

Billing Methods

There are three (3) billing methods, one of which will have been specified in the Service Agreement Summary page of this Agreement as the Billing Method. These are (1) Upfront (2) Monthly (3) Capped Service Pricing. All Periodic Servicing prices are fixed for the term of this Agreement. Once this Agreement is started the billing method selected cannot be changed.

• Option 1 –Upfront

Invoice value will be based on total charges calculated to complete this Agreement, at the time of offer.

• Option 2 – Monthly*

Invoice charge value will be calculated based on the reported hour meter usage of the machine from the previous invoice, multiplied by the rate per hour of this Agreement (the agreed fixed rate per hour). Invoicing will occur at maximum once per month.

* Not available for Parts Only Package option

• Option 3 – Capped Price Servicing (When Services are Performed)

Invoice value will be based on the cost of each Periodic Service interval as detailed in the attached Service Agreement Summary, as and when they occur. It should be noted that on occasions some Service intervals will occur concurrently and in this instance the invoice value will be based on the sum of the concurrent services being performed. Should the Customer fail to utilise HCA for two (2) consecutive scheduled Periodic Services under this billing method then HCA can elect to terminate this Agreement.

* Parts Only Package

HCA to supply required Service parts and fluids only, in line with machine Maintenance Planner.

Parts package supplied within one (1) week of equipment service due date, subject to sufficient notification from the Customer.

Billing method and machine reporting (as set out in this document above).

Supplied on an FCA (Incoterms 2020) – nominated HCA branch basis. Customer is responsible for freight cost from the HCA branch to Customer’s nominated address.

Reconciliation

For Monthly Billing Option, HCA reserves the right to perform a reconciliation at the expiry or termination of the Agreement should the Agreement End SMU is not achieved. The reconciliation may result in a payment to HCA, credit to the Customer, or no action. HCA shall provide the Customer with full and transparent access to all data required for the purpose of performing the reconciliation.

GST

All Values indicated in this contract are exclusive of GST.  The relevant GST charge will be added at the time of invoicing.

Service Personnel

All services included in this Agreement will be performed by trained HCA personnel or HCA authorised agents.

Parts

Only genuine or OEM approved parts will be used for the Periodic Services covered by this Agreement.

Termination

Should there be a significant change in circumstances incurred by either parties, this Agreement may be terminated upon receipt of a sixty (60) days’ written notice of such intent. If the Customer fails to have the services completed by HCA then the Customer will be in default, and the Agreement will be terminated by HCA. The Customer may terminate the Agreement at any time after giving 60 days written notice.

Assignment

The Customer can only assign or novate this Agreement with consent from HCA (which shall not be unreasonably withheld).

Changes to Machine Configuration or Application

Should the machine detailed in the attached Service Agreement Summary have attachments fitted or the machine’s application is changed after the commencement of this Agreement and this change alters the requirements of the Periodic Service intervals then HCA reserves the right to either terminate the Agreement as specified in this document above or negotiate changes to the Agreement charges with the Customer to suit the new machine configuration and Periodic Services requirements.

EXCLUSIONS

Attachments – Periodic Services requirements for attachments such as, but not limited to, Hammers, Shears, Booms, Winches, Processing Head, Hepa filters, aftermarket grease systems etc. are not included or covered by this Agreement.

Sundries and environmental charges

Sundries and environmental charges are included in this agreement.