ABSTRACT

It is common within term service contracts that the Contractor uses equipment, Plant and Materials provided by the Client, as the Contractor is often working within the Client's premises. If the Client gives the Contractor the right to use these facilities, then the Contractor may only use them to Provide the Service, and for no other reason. If the Contractor removes Plant and Materials from the Service Areas with the Service Manager's permission, title reverts back to the Contractor. One aspect to bear in mind in considering the words 'whatever title the Contractor has to Plant and Materials' is the use of 'retention of title' clauses. If retention of title clause was drafted only to retain ownership of the goods until payment was made for them, goods such as any raw materials cease to be caught by it once the manufacturing process has begun, i.e. once the goods have lost their identity.