1. THE PURCHASE AGREEMENT
These Rental Equipment Terms & Conditions (“
Rental T&Cs”) form part of, and are incorporated into, each purchase order issued by ALEC [●] (the “
PO”) for the rental of equipment [
Insert Description] (the “
Equipment”). Together, the PO and these Rental T&Cs constitute the “
Agreement”. This Agreement governs the supply, delivery, use and demobilisation of theEquipment by the supplier identified in the PO (the “
Supplier”). Incase of conflict between these Rental T&Cs and any other document forming part of the Agreement, these Rental T&Cs shall prevail unless expressly stated otherwise in the PO.
2. ACKNOWLEDGMENT
The Supplier shall acknowledge receipt and acceptance of the PO within seven (7)[1]days of receipt. If not acknowledged within that period, the PO shall be deemed accepted unconditionally.
3. DELIVERY,DOCUMENTATION, AND INSPECTION
3.1 Delivery shall occur on the date and at the site specified in the PO (the “
Site”). Upon delivery, the Supplier shall provide (a) a delivery note quoting the PO and job number; (b) signed delivery receipts; and (c) valid inspection and test certificates, manuals, and operator licenses.
3.2 ALEC may inspect the Equipment on delivery and during the rental period and reject anyEquipment that is defective, unsafe, or non-compliant, in which case theSupplier shall remove and replace the defected equipment within a time-limit not exceeding [24/48
[2]]hours at no cost to ALEC. If the Supplier fails to replace defective or inoperative Equipment within [24/48] hours ofALEC’s notice, ALEC may procure replacement equipment from third parties and recover all related costs from the Supplier.
3.3 The Supplier shall maintain accurate and auditable records of all Equipment delivered to or handled for ALEC. ALEC may verify and audit such records at any time. In case of discrepancy between ALEC’s and the Supplier’s records, ALEC’s records shall prevail unless the Supplier provides conclusive evidence to the contrary.
4. RISK, TITLE,AND CONDITION
4.1 Title to the Equipment remains with the Supplier at all times. Risk in the Equipment, including damage, loss or theft, remains with the Supplier from mobilisation until demobilisation and written off-hire confirmation by ALEC. The Supplier shall keep the Equipment in safe, good working order and ensure full compliance with applicable laws and ALEC’s HSSE Requirements (
as defined below).
4.2 The Supplier shall not deliver, use, or store any hazardous or flammable materials on theSite without ALEC’s prior written consent and provision of all safety data sheets. The Supplier shall be solely responsible for compliance with all laws governing hazardous materials and shall indemnify ALEC for any loss, damage, or claim arising therefrom.
5. OPERATION AND OPERATORS
Where the PO requires the Supplier to provide operators (“
Operators”), the Supplier shall supply competent, trained and licensed personnel at its sole cost, including wages, accommodation and travel. ALEC may request replacement of any Operator at its reasonable discretion, and the Supplier shall comply immediately at no cost. The Supplier remains responsible for the safe operation of the Equipment.
6. RENTAL CHARGES AND DOWNTIME
6.1 Unless otherwise stated, the rental rate is fixed and includes all mobilisation, demobilisation, insurance, permits, and Operator’s costs (as applicable). No rental charges apply for any period when the Equipment is inoperative due to breakdown, maintenance or non-compliance. ALEC may require immediate replacement at the Supplier’s cost or obtain alternative Equipment and recover the difference from the Supplier.
6.2 Prices are fixed for the duration of the applicable PO. No adjustment for inflation, exchange-rate movement, or cost escalation shall apply unless expressly approved in writing by ALEC following submission of verifiable supporting documentation.
7. MAINTENANCE AND SAFETY
TheSupplier shall perform all maintenance, inspections and certifications to ensure safe operation and legal compliance. All maintenance and repair costs are included in the rental charges. The Supplier shall comply with ALEC’s site,HSSE and PPE requirements, and immediately report any accident, incident or near miss.
8. INVOICES AND PAYMENT
Invoices shall quote the PO number, attach signed delivery/off-hire receipts, and comply with ALEC’s invoicing instructions. Payment shall be made within sixty (60)days of receipt of a correct, undisputed invoice by ALEC, provided theEquipment has been accepted as satisfactory. ALEC may set off any sums due from the Supplier under any other contract.
9. TAXES 9.1 Charges are exclusive of VAT. Where applicable, VAT shall be added at the prevailing rate.The Supplier is responsible for all other taxes, duties or fees arising from the rental and shall indemnify ALEC against related claims.
9.2 The Supplier shall be responsible for all taxes, duties, fees, and charges arising from the rental and performance under this Agreement. The Supplier shall indemnify ALEC against any claim, assessment, or penalty resulting from the Supplier’s failure to comply with its tax or customs obligations.
10. INSURANCETheSupplier shall, at its cost, maintain the insurance policies set out in
Annex1 throughout mobilisation, operation and demobilisation. All policies shall (a) name ALEC and its affiliates as additional insureds; (b) be primary and non-contributory; (c) include waiver of subrogation and indemnity to principal clauses; and (d) provide thirty (30) days’ prior written notice of cancellation. Evidence of coverage and premium payment shall be submitted before mobilization and upon renewal
.
11. INDEMNITY AND LIABILITY
11.1 The Supplier shall indemnify and hold harmless ALEC, its affiliates, and personnel from all claims, losses, damages, costs, and expenses (including legal fees) made or brought against them arising out of or in connection with the Equipment, its use, or the acts/omissions of the Supplier, its subcontractors, or personnel.ALEC shall not be liable for any indirect or consequential losses, including loss of profit or business. 11.2 The Supplier’s liability shall be unlimited for (a) death, personal injury, or property damage; (b) fraud, gross negligence, or willful misconduct; (c) breach of confidentiality, data protection, or anti-corruption obligations; or (d)failure to maintain insurance. 11.3 The Supplier waives any lien, retention or security interest over ALEC’s property, goods, orEquipment.
12. AUDIT RIGHTS
ALEC may audit the Supplier’s invoices, delivery notes, logs and supporting records on reasonable notice during the rental period and for twenty-four (24) months thereafter.
13. TERMINATION AND OFF-HIRE
ALEC may terminate the PO as a whole or in part for convenience by giving thirty (30)days’ written notice. ALEC may terminate immediately for cause, includingSupplier default, unsafe or non-compliant Equipment, or failure to maintain insurance. Upon termination, the Supplier shall promptly demobilise and remove all Equipment at its own cost within [48/72]hours of termination or ALEC’s off-hire notice; failing which ALEC may arrange removal/storage at the Supplier’s risk and cost.
14. FORCE MAJEURE
If a Force Majeure event continues for more than thirty (30) days, ALEC may terminate the Agreement or PO immediately without liability other than payment for accepted services up to the effective date.
15. ETHICAL CONDUCT AND CONFLICT OF INTEREST
The Supplier shall conduct its business with integrity and in accordance withALEC’s ethical standards and applicable laws and regulations in the UAE. The Supplier shall not, and shall ensure its employees, agents, and subcontractors do not, offer, give, or receive any gift, payment, or benefit of value to or from any ALEC employee or representative. Any breach of this clause shall constitute a material breach entitling ALEC to immediate termination.
16. HEALTH, SAFETY,SECURITY AND ENVIRONMENT (HSSE)
The Supplier shall ensure that all personnel entering ALEC sites comply with ALEC’s health, safety, security, and environment (HSSE) policies, procedures, and any site-specific safety rules. All required Personal Protective Equipment (PPE)shall be provided by the Supplier at its sole cost. The Supplier shall promptly report any accident, injury, environmental incident, or near miss to ALEC.Breach of HSSE obligations entitles ALEC to suspend or terminate the PO immediately. ALEC’s determination as to compliance with its HSSE standards shall be final and binding.
17. CONFIDENTIALITY 17.1 All information, documents, drawings, and data obtained by the Supplier in connection with the rental or operation of the Equipment are ALEC’s confidential information. The Supplier shall not disclose or use such information except as strictly necessary to perform the PO. This obligation survives termination or expiry of the Agreement.
17.2 The Supplier shall not retain ALEC’s confidential information beyond the term except as required by law or accounting standards, and any retained data shall remain subject to confidentiality obligations.
17.3 Upon expiry or termination, the Supplier shall promptly return or permanently delete all ALECdata in its possession, subject to statutory retention obligations.
18. DATA PROTECTION
Where the Supplier receives, accesses, or processes any personal data on behalf of ALEC, it shall comply with Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data (PDPL) and ALEC’s data-protection instructions. The Supplier shall implement appropriate security measures and immediately notify ALEC of any data breach.
19. ANTI-CORRUPTION AND COMPLIANCE
19.1 The Supplier shall, and shall ensure that its affiliates, directors, officers, employees, agents, and subcontractors shall, comply with all applicable anti-bribery, anti-corruption, and anti-money-laundering laws and regulations, including without limitation Federal Decree-Law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations, and any similar legislation in the jurisdictions where the Supplier operates.
19.2 The Supplier warrants that it has not, and will not, directly or indirectly, offer, promise, authorise, give, or receive any payment, gift, or other thing of value to or from
:a) any government official or employee (including government-owned or controlled entities)
;b) any employee, officer, or representative of ALEC or any of its affiliates; or
c) any other person or entity ,for the purpose of influencing any act or decision or obtaining any improper business advantage.
19.3 The Supplier shall comply with all applicable laws, ALEC’s HSSE standards, anti-bribery and corruption laws, export controls, data protection requirements, and the UAE Federal Decree Law No. 45 of 2021 (PDPL). Breach of this clause constitutes a material breach entitling ALEC to immediate termination.
19.4 The Supplier warrants that it, its affiliates, and subcontractors comply with all applicable export-control, sanctions, and trade-restriction laws, including those of theUAE, the United Nations, the United States, and the European Union. The supplier shall not engage in any transaction that exposes ALEC to sanctions risk. Any breach shall entitle ALEC to terminate immediately and recover all resulting losses.
19.5 The Supplier shall maintain accurate books and records and have in place adequate internal controls to ensure compliance with this clause.
19.6 ALEC may, at its discretion, conduct compliance reviews or audits to verify adherence. TheSupplier shall fully cooperate and provide reasonable access to information and personnel.
19.7 ALEC may immediately terminate this Agreement, without liability or penalty, upon a reasonable belief that the Supplier has breached or may have breached this clause. The Supplier shall indemnify and hold harmless ALEC, its affiliates, and personnel from any loss, liability, or expense arising from any such breach. 19.8 The Supplier shall ensure that this clause is included in all subcontracts entered into in connection with the rental of the Equipment.
20. NON-SOLICITATION
During the rental period of the Equipment and for eighteen (18) months after its completion, the Supplier shall not directly or indirectly solicit or employ any ALEC employee involved in the Agreement without ALEC’s prior written consent.In case of breach, the Supplier shall pay ALEC a liquidated sum equal to twelve(12) months’ gross remuneration of the employee. This clause shall apply notwithstanding any termination or expiry of this Agreement.
21. CODE OF CONDUCT
The Supplier confirms it has reviewed, and shall comply with, ALEC’s Code of Conduct and related compliance policies in performing the Agreement. Failure to comply may constitute a material breach entitling ALEC to terminate the Agreement immediately.
22. ASSIGNMENT 22.1 The Supplier shall not assign, transfer or subcontract any obligation under the PO without ALEC’s prior written consent. Any approved subcontracting shall not relieve the Supplier of its obligations.
22.2 The Supplier shall remain fully responsible for the acts, omissions, and payments of all personnel and subcontractors engaged in performing the Services. Nothing in this Agreement shall be construed as creating an employment or agency relationship between ALEC and such personnel. The Supplier shall indemnify ALEC against all employment-related claims. Approval does not relieve the Supplier of any obligation; the Supplier remains solely responsible. No subcontract creates privity between ALEC and any subcontractor.
23. NOTICES
All notices shall be in writing and delivered by courier or email to the address stated in the PO. Email notices are effective upon acknowledgement of receipt.
24. APPLICABLE LAWAND JURISDICTION
The laws of the Emirate of Abu Dhabi and the Federal Laws of the United ArabEmirates govern the Agreement. Unless the Agreement expressly provides for arbitration, any dispute not resolved to the Parties’ mutual satisfaction shall be submitted to the exclusive jurisdiction of the courts of Abu Dhabi, UnitedArab Emirates.
[1] Time-limit to be confirmed by ALEC.
[2] ALEC to kindly advise.