It Is Not Your Vehicle, But It Might Be Your Problem
Plenty of contractors and subcontractors operate client-owned vehicles and plant as part of their work. Mining, civil construction, local government, rail: it is common to be handed the keys to a machine that does not belong to you and told to get to work.
The vehicle belongs to the client. The compliance obligations? Those do not transfer so neatly.
Chain of Responsibility Applies
The Chain of Responsibility (CoR) framework is central to understanding who is accountable when things go wrong with vehicles on Australian worksites. The National Heavy Vehicle Regulator (NHVR) states clearly: "you are responsible for managing the safety of your own transport activities."
This means that even when operating a client's vehicle, your business has duties under CoR. You cannot outsource accountability by pointing to the vehicle owner.
The Owner's Responsibilities
The vehicle or plant owner retains responsibility for:
- Registration and insurance - CTP and registration remain the vehicle owner's responsibility at all times
- Roadworthiness (for road vehicles) - ensuring the vehicle meets roadworthy standards
- Major maintenance and repairs - engine rebuilds, structural repairs, safety-critical component replacements
- Providing maintenance records - making service history available to the contractor
The Contractor's Responsibilities
As the person or business operating the equipment, you are responsible for:
- Daily prestarts - inspecting the vehicle before use, every shift, regardless of who owns it
- Reporting defects - identifying and reporting faults to the owner promptly
- Not operating unsafe equipment - if a prestart identifies a safety issue, the machine does not move until it is resolved
- Operator competency - ensuring your workers are licensed, trained, and competent
- Recording operational data - hours, readings, fuel, and usage data during the period you are operating the equipment
Engaging and Monitoring Contractors
The NHVR guidance goes further. Where a contractor performs tasks under your direction, you are responsible for engaging and monitoring their activities. This applies to both the vehicle owner directing work and the contractor operating equipment.
The key principle: "if you should reasonably notice obvious risks associated with maintenance, you are required to do something about it." Ignorance is not a defence when risks are visible.
Under WHS legislation, the obligation to ensure equipment is safe to operate sits with anyone who has control over the work. "It is not my machine" is not a defence if brakes fail because you did not do a prestart.
Prestart Obligations on Client Vehicles
Your prestart obligations do not change based on who owns the vehicle. If your workers are operating it, it needs a prestart before every shift.
What to Cover
The prestart checklist for a client vehicle should be the same standard as your own fleet:
- Safety-critical items - brakes, steering, lights, seatbelts, rollover protection, fire extinguisher
- Fluid levels - engine oil, coolant, hydraulic oil, fuel
- Tyres and tracks - condition, pressure, wear, damage
- Operational items - horn, reversing alarm, mirrors, windscreen wipers
- Vehicle-specific items - whatever is relevant to the machine type
Documenting the Prestart
Document your prestarts on client vehicles to the same standard as your own fleet. If an incident occurs on a client vehicle that you are operating, the first thing the investigation examines is whether a prestart was completed and what it found.
Digital prestarts with timestamps, operator identification, and photo evidence are significantly stronger than a scribbled paper form.
When a Prestart Finds a Defect
This is a critical workflow:
- Record the defect with photos and a clear description
- Do not operate the vehicle if the defect is safety-critical
- Notify the client immediately in writing, not just a phone call
- Keep a record of the notification - when you reported it, to whom, and their response
- Do not resume operation until the defect is resolved and confirmed safe
Your obligation is to report and not operate. You do not need the client's permission to shut down an unsafe machine.
CLOCS-A and Vehicle Safety Standards
For contractors operating in urban construction or working near vulnerable road users, the CLOCS-A (Construction Logistics and Community Safety - Australia) Vehicle Safety Standards are increasingly relevant. These standards set out safety requirements for construction vehicles, particularly around visibility, sensors, and safe cab design.
If your client requires CLOCS-A compliance, ensure the vehicles you are operating meet the standard before commencing work.
Service Tracking on Client Equipment
When operating client vehicles long-term, services will fall due during your contract period. How this is handled should be in your contract, but regardless, you need to track it.
Why Track Services Even If the Client Is Responsible
- Liability protection - if you are operating a machine and the engine fails because the service was 300 hours overdue, you need to demonstrate that you flagged it
- Operational planning - knowing when a machine needs servicing lets you plan around the downtime
- Professional standards - clients notice when a contractor is tracking their fleet better than they are. It builds trust and wins repeat work.
What to Track
- Current hours or kilometres - updated from daily prestarts
- Last service date and reading - so you can calculate when the next one is due
- Service intervals - as specified by the manufacturer or the client's maintenance plan
- Service status - approaching, due, or overdue
Track service intervals on client vehicles even if you are not responsible for performing the work. The record showing you flagged an overdue service protects you if something goes wrong.
The Grey Area in Contracts
Responsibilities overlap, and contracts do not always spell out the details. These questions come up constantly:
- Who pays for a service that falls due during the contract period?
- Who is responsible for consumables like filters, oils, and wear parts?
- If a defect is found during a prestart, who arranges and pays for the repair?
- If the client's vehicle does not have a current service, can you refuse to operate it?
Get these details into your contract before you start. A one-paragraph clause covering maintenance responsibilities during the contract period saves arguments and protects both parties.
Insurance Implications
Operating client vehicles introduces insurance complexity.
- Does the client's insurance cover your operators? Some policies exclude third-party operators.
- Does your public liability cover damage to client-owned equipment? Standard policies may not.
- Who is liable for damage caused by your operator? Contractual liability and insurance liability are different things.
- Are there excess or deductible responsibilities?
Talk to your insurance broker before you operate client equipment. A gap in coverage discovered after an incident is an expensive lesson.
Documentation and Record Keeping
Keeping Records Separate
Your system needs to clearly distinguish between company-owned vehicles and client-owned vehicles. Mixing them creates confusion in reporting, compliance audits, and cost tracking.
You should be able to:
- Filter and report by ownership - show all client vehicles vs all company vehicles
- Attribute costs correctly - fuel and consumables for client vehicles should not appear in your fleet operating costs
- Maintain separate compliance records - prestarts, service history, and defect logs per vehicle
Handover Documentation
When you take possession of a client vehicle, document its condition. When you hand it back, document it again.
- Condition photos at handover, both directions
- Current reading (hours or km)
- Known defects and their status
- Service status - last service and when the next is due
- Any modifications or repairs you made during the contract period
Treat Client Vehicles Like Your Own
The standard of care should not change based on whose name is on the registration. Prestart every shift. Track the readings. Flag the services. Document the defects. Keep the records clean.
Burgy lets you manage client-owned vehicles alongside your own fleet, with separate ownership tagging, the same prestart and service tracking workflows, and clear reporting that distinguishes company assets from client assets.