# Plant and Machinery > Plant and Machinery means both electronic and mechanical equipment, inclusive of integral parts, fixed or mobile and owned by [organization] **Term:** Plant and Machinery **Last updated:** 2026-07-29 ## Definition ## What Plant and Machinery Means in a Contract Plant and Machinery is a defined term used to describe the physical, operational assets that a business owns or controls, spanning both electronic devices and mechanical apparatus. It typically includes integral parts, meaning components that are essential to the equipment's function even if they could theoretically be removed or replaced. This broad framing ensures that contracts capture not just standalone machines but the accessories, controls, and fittings that make them work. The term is deliberately inclusive of both fixed and mobile equipment. Fixed plant might include installed generators, production lines, or heating systems bolted to a building, while mobile machinery could cover forklifts, vehicles, or portable tools that move between sites. By covering both categories, a contract avoids disputes about whether a particular asset falls inside or outside the scope of an agreement. Ownership is often a key qualifier attached to the definition. When a contract states that Plant and Machinery is owned by a specific organization, it draws a line between assets the business is responsible for and equipment that might be leased, borrowed, or owned by a third party such as a supplier or contractor. ## How Plant and Machinery Is Defined or Measured Unlike terms tied to a statutory formula, Plant and Machinery is usually defined contractually rather than measured by a fixed calculation. Drafters typically list categories of equipment, reference an attached schedule, or use functional language describing anything used in the operation, maintenance, or production processes of the business. The definition may also cross-reference an asset register maintained by the organization. Some agreements measure Plant and Machinery by value, for insurance or security purposes, requiring periodic valuations or depreciation schedules. Others measure it by function, distinguishing between equipment essential to core operations and ancillary items that fall outside the definition. This functional approach helps parties determine which assets trigger specific obligations, such as maintenance duties or risk transfer. - Ownership status: whether the organization holds legal title or merely possesses the asset under a lease. - Physical state: whether equipment is fixed to real property or remains mobile and transferable. - Integral parts: components that must be included because they are inseparable from the asset's core function. ## Where Plant and Machinery Appears in Agreements The term commonly appears in asset purchase agreements, financing arrangements, insurance policies, and security documents, where it identifies the collateral or subject matter of a transaction. It is also central to agreements governing the use of equipment, such as an