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Warranty / Defects liability

Some common deviations/exceptions often taken with respect to Warranty provisions are:

Exception/deviation by Tenderer

Client position

Shorter Warranty duration offered by Tenderers against ITT requirements

Deviation should not be accepted if it is based on technical considerations and functional requirements as it could potentially compromise the end product.

No extended Warranty on repaired / replaced parts

Warranty, generally, on repaired/replaced parts if it is based on technical requirements it should not be accepted, however could be limited to major equipment.

Contractor to determine if a defective/deficient part is to be repaired or replaced

Client expects supplied material is new to be free from defects and if found defective at operation, Client expects a new replacement instead of the Contractor repairing the defective part.

This deviation could be examined if the piece of equipment/material is large in terms of size and considerable logistical problems could be involved in transporting it back to the factory of the manufacturer and if Client places high value on its relation with the Contractor.

Listing of items defined as being subject to normal wear and tear not covered under warranty.

Differences in this regard could arise due to lack of common understanding of the functioning of equipment and hence a fuller discussion with Contractor should be undertaken to determine what item is subject to normal wear and tear and what is not, to make a proper decision.

Cost of transportation/insurance for parts needing replacement that are to be shipped to manufacturers works. Most Contractors insist the defective parts if needing repair or replacement be shipped to their works at Client cost.

Such exceptions should be examined in light of normal industry practices as otherwise the Contract price could be inflated due to unforeseen risks.

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