Contractor wants to use it for free? Not paying you any compensation just so he won't have to truck in his backhoe.
Not quite that way. If he trucks in his backhoe, he is contractually entitled to charge me for the trucking both ways and his time while operating it. If I let him use mine, I save the trucking costs.
if he wants to charge you $35 an hour while he's running your BH then you should charge him / rent it to him for $35 an hour for the use of your BH. This saves him and you time and money by not requiring him to go and get another BH trucked in to do the job.
The real issue is that he is contractually entitled to pass that cost on to me, just the same as he would if he hired a subcontractor to bring in a backhoe.
If I charge him $35 an hour for the hoe, he will just add that to my bill and get me to pay him back. This might actually make some sense, because I would then be in the backhoe rental business, and could depreciate the equipment on my taxes.
Somehow though I suspect Uncle would look at that with a jaundiced eye, claim it was a sham transaction, and start talking fines, penalties and time in the greybar hotel.
My insurance would cover any liability issues, and breakage would be handled in one of two ways. If it is a "wear out" problem, the tractor is still under warranty, and the years on the warranty will expire long before the operating hours do. I would really like to get a few more hours to shake out any early failures. If it is a "he broke something issue" I will get his agreement to pay for that.
I can't be the operator right now because I still have a job in the SF Bay area and only get up to Grants Pass once every two weeks. I retire at the end of April, and at that point I will be the operator, which will also save the $35/hour.
Thanks for all the things to think about.
I am inclined to let him (but no one else) use the backhoe, if we get a written agreement on the damage issue, and if he will limit the use to less than 10 hours on the tach every two weeks. This will let me maintain the grease schedule myself, which I do not trust anyone else to do. I might have to buy an electric grease gun -- tragedy.
I am leaving to go up there Wednesday afternoon. I will talk to him Thursday and post the solution. I'll try to follow up if anything goes wrong, or goes right. I think I can save enough to make the risks worthwhile.