STANDARD CONDITIONS OF A PURCHASE ORDER RAISED BY ELDER ENGINEERING (HERTS) LTD
In these conditions and in all texts relating to the Purchase order ‘The Order’ means the Purchase Order and any amendments relating thereto‘Supplies’ means all articles, materials or work being the subject of the Order.The ‘Supplier’ means the sub-contractor or stockist on whom the order is placed.The ‘Specification’ means the technical requirement and/or description of the Supplies specifically defined in the Order.‘Elder’ means Elder Engineering (Herts) Ltd.
These conditions are an integral part of the Order and shall apply except to the extent that they may be inconsistent with any Special Conditions appearing on the face of or otherwise incorporated in the Order which shall have precedence over these Conditions. Such Special Conditions and these Conditions shall govern the Order to the exclusion of any other items and conditions and shall not be varied except with the written agreement of Elder and the supplier.These conditions are to be flowed down to the supply chain including any additional requirements of Elder’s customer.
(a) Delivery shall be strictly in accordance with the Order. Elder will have the option to cancel the Order wholly or in part without liability to Elder where delivery is not made on the date specified without prejudice to any other right or remedy which Elder may have. The Supplier shall not be liable to delays in delivery due to causes beyond the Supplier’s control and without the Supplier’s fault or negligence provided that the Supplier promptly notifies Elder of any delay or anticipated delay as soon as it is known and resumes performance as soon as it is possible thereafter. However if such delay exceeds one month Elder shall be entitled to cancel the Order without liability to Elder except in respect of Supplies already delivered to Elder prior to such cancellation.
(b) Acceptance of Deliveries. Suppliers must note and acknowledge that Elder’s Orders are executed for deliveries to be effected during normal working hours, i.e. 8.15am – 12.30pm and 1.30pm – 5.00pm Monday to Thursday and 8.15am – 1.00pm Friday. Delivery outside of Standard Working Hours is only permissible following Elder’s specific written authorisation.
(c) Supplies must be delivered in accordance with the instruction on the face of the Order and at the Supplier’s own risk.
(d) All Supplies must be properly and securely packed. Elder shall not pay for packing cases or containers but will return them to the Supplier if so requested at their expense.
(e) Elder’s representatives are to be allowed to visit the Supplier’s premises at any reasonable time to check the progress of the work on the Supplies and the Quality Engineer of Elder or his representative or any other inspector or representative of the customer of Elder or the customer’s agent or any Government Department concerned shall be entitled on the authority of Elder to inspect the Supplies which are the subject of the Order at any reasonable time at the Supplier’s Works or at the premises of permitted subcontractor(s). The Supplier shall provide reasonable facilities for these activities and any documents required.
(f) Without prejudice to the Supplier’s other obligations herein and unless otherwise agreed in writing, title to the Supplies shall pass to Elder upon accepted delivery at Elder’s works.
5. INSPECTION AND REJECTION
(a) The Supplier shall ensure that the Order is carried out in conformity with the quality requirements of Elder. The Supplies shall be subjected to those quality assurance conditions shown on the face of the order. Prior to delivery, Elder, Elder’s customer and any Regulatory Authorities shall be entitled to inspect the vendor’s product and product organisation at the site of the vendor’s plant. In no case shall such an inspection imply acceptance of the product by Elder. All items on this order must be supplied in full accordance with the quality system as approved by Elder.
(b) Not withstanding that supplies survive inspection, acceptance and payment by Elder, Elder reserves the right through its Quality Manager to reject any Supplies which do not comply with the Specification or do not meet with the required standards of design, material, workmanship or quality or which are not in accordance with the Supplier’s samples approved by Elder. Elder may return such rejected Supplies to the Supplier at the Supplier’s expense and risk and the Suppliers shall at Elder’s option credit the value of such goods to Elder or supply replacement Supplies Free of Charge within a reasonable time without prejudice.
(c) The provisions of Clause 5 (b) of these Conditions do not modify in any respect the responsibility the Supplier has for ensuring that all materials, component parts, sub-assembles and assemblies are of new manufacture and are in accordance with Drawing Specifications and meet the required standards of workmanship.
(d) The supplier shall notify Elder of non-conforming product and obtain approval for product disposition.
6. ADVICE AND RELEASE CERTIFICATES
The Supplier shall:-
(a) On the day of despatch of each consignment send Advice note(s) and such Certificate(s) of Conformity, Civil Approval Certificate(s) and Invoice(s) as may be indicated by the terms of the Order. One copy of the Certificate of Conformity, Civil Approval Certificate or such other document as may be required by the specification.
(b) The Supplier shall ensure that each such Certificate is signed by the executive of the Supplier responsible for product quality (or approved signatory).
(c) All document records of product supplied to Elder will be kept for a period of no less than 7 years and shall be available for review by customers and regulatory authorities in accordance with contract or regulatory requirements.
Where prices have been agreed, no alteration may be made without the consent of Elder in writing. Where prices are still to be agreed at the time the Order is placed, the quotation must be submitted by the Supplier and confirming amendments issued by Elder before invoices are rendered.
(a) Invoices should be submitted by the 8th of the month following the month of delivery and should quote order item, part and drawing numbers and description quantities.
(b) All invoices shall state the price or the supplies exclusive of VAT and show the amount of VAT (if any) separately.
(c) Payment against submitted Invoices will be made 60 days from the end of the month following delivery of Supplies defined in Section 4.