Articles > Construction

What is a Wet Hire Agreement?

February 16, 2021   Jethro FoxPhilip Evangelou

A wet hire agreement is a contract between two parties, where one party wishes to rent a product, as well as a service provider or operator from the party who owns the goods. 

This form of agreement is common when hiring equipment, machinery or vehicles. 

This differs from a Dry Hire Agreement, which includes the hiring of the goods only. 

Under a wet hire agreement, the contractor owns the equipment and is required to perform the services needed under the agreement. 

What Should Be Included in a Wet Hire Agreement?

The hire agreement should set out all the terms and conditions of hiring the goods. The following provisions are commonly found in wet hire agreements:

  • Description of goods & services: it is important to specify what is actually being hired under the agreement. 
  • Hire period: the commencement and ending date of the hire period.
  • Payment terms: details on the cost of hiring, when the payment must be made and additional information related to costs or payment. 
  • Obligations of the parties: usually includes the responsibilities of both parties under the agreement. For example, the hirer must ensure safety in storing the equipment, whilst the owner must ensure the goods are in good working condition before the hiring period commences. 
  • Liability: a provision relating to liability and indemnity is commonly included, which sets out who is liable for damaged goods or accidents from improper use of equipment. 

Benefits of a Wet Hire Agreement?

This form of hire agreement brings with it numerous benefits for both parties:


  • Ensures for a smooth and convenient hiring experience. A wet hire agreement will include someone to operate the equipment. this means that the hirer won’t have to go through the effort of finding an operator themselves. 
  • More likely to see high quality results, as the operator of the equipment will likely be someone qualified and skilled in that particular area. 


  • As the owner will be required to provide an operator of the equipment under the agreement, this reduces the likelihood of damage to the goods, as they don’t run the risk of just letting anyone use the equipment. 
  • Usually a wet hire agreement will cost more than a dry hire agreement, due to the fact that it will include an additional fee for including a service provider. 
  • Useful for a company who is hiring out specialist equipment, as a wet hire agreement allows them to meet the customers needs whilst safeguarding their equipment.

To Sum Up 

There are benefits for both parties under a wet hire agreement, yet it is crucial to be fully aware of all the terms and conditions that may be included in the agreement. 

Seeking advice from a legal professional is always recommended. 

If you’d like to speak with one of our construction lawyers, feel free to contact as at 1300 337 997, or fill out the contact form.  

About Jethro Fox

Jethro FoxJethro is a paralegal. His main legal interests are with Intellectual Property, Technology and Innovation, as well as areas of Corporate Law. He is in his final year of a Bachelor of Laws/Bachelor of Economics double degree at the UTS.

About Philip Evangelou

phillipPhil is a director at OpenLegal. He has over 16 years experience working in private practice and in-house counsel in Sydney and London, giving him expertise in employment law, IP, finance, leases, dispute resolution, insurance and contracts.