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Subleasing Equipment

The phone rings. On the other end is the tent supplier you’ve hired to handle the company’s annual golf event — complete with a dozen tent structures, flooring and lighting.

While some vendors may have all of the necessary equipment on hand, others turn to subleasing equipment from additional vendors in the industry in order to meet a client’s needs.

If you learn that a vendor you hired is subleasing equipment for your event, make sure they thoroughly evaluate the reputation of the vendor from whom they are choosing to sublease. If you don’t know them, jump in the car and go and see a job they’ve done.
And creating an extensive contract that clearly defines the role each entity will play in the equipment rental is imperative. You need a firm understanding of what each company is going to do in terms of delivery, set up, cleaning and other labor involved.

Also, equipment companies of all sizes should make sure they prove they have the proper level of liability insurance to cover your events, and if the company from which they sublease equipment is also properly insured. Remember, if Tent Company A contracts with Tent Company B to sublease the equipment and to put it up, then Tent Company B is liable for that structure.

Finally, as more and more companies consider subleasing equipment, many are using non-compete agreements with the companies from whom they sublease, to eliminate their ability to contact the meeting or event planner for future work. That’s why it is imperative to have a good working relationship and lines of communication with your chosen vendors and even the companies from whom they sublease. If you have a strong relationship you know what to expect from all parties involved.