CONTRACT -TERMS AND CONDITIONS APPLYING TO SERVICE ORDERS

 SCHEDULE “B”                                                               CONTRACT NO.    

ATTACHMENT   ‘I’

 

 

TERMS AND CONDITIONS APPLYING TO

SERVICE ORDERS

 

 

1.      DEFINITION AND FORM OF SERVICE ORDER

 

A SERVICE ORDER is a written direction to CONTRACTOR to perform specified WORK under the terms and conditions of this CONTRACT.   It shall be issued by the COMPANY REPRESENTATIVE on a COMPANY SERVICE ORDER form and shall stipulate the type of WORK to be performed, the applicable unit rates and estimated quantities or times, and the start and completion dates.  The SERVICE ORDER shall give CONTRACTOR not less than one (1) months notice prior to the required WORK start date, unless CONTRACTOR waives such notice in writing.  No SERVICE ORDER shall be issued pursuant to this CONTRACT which has a completion date extending beyond the expiration of the CONTRACT or any authorized extension thereof.

 

2.      CONTRACTOR OBLIGATIONS

 

CONTRACTOR shall acknowledge receipt of every SERVICE ORDER by signing it in the presence of the COMPANY REPRESENTATIVE.  CONTRACTOR specifically agrees to perform the required WORK within the stipulated period.  When CONTRACTOR considers that the WORK as specified in a SERVICE ORDER is already complete it shall notify COMPANY in writing.  Within ten (10) working days following receipt of said notice COMPANY shall, if applicable, inspect the WORK and shall either certify that the WORK has been completed or shall advise CONTRACTOR of the remaining or corrective WORK required to complete WORK specified in the SERVICE ORDER.

 

3.     FAILURE TO PERFORM

 

If CONTRACTOR is unable to perform the required WORK within the stipulated period, COMPANY may accomplish the WORK which CONTRACTOR is unable to perform through any other person or contractor it deems appropriate.  COMPANY  shall be entitled to set off against amounts due CONTRACTOR those amounts payable to others on account of any WORK performed by them in so far as such amounts exceed what would have been paid to CONTRACTOR.

 

4.      CANCELLATION AND MODIFICATION

 

Notwithstanding paragraphs 15 and 16 of Schedule “A”, COMPANY may cancel a SERVICE ORDER at any time by giving CONTRACTOR written notice of such cancellation.  Upon receipt and verification of CONTRACTOR’s invoices, COMPANY shall pay CONTRACTOR all amounts properly due pursuant to Schedule “C” for WORK performed up to the date CONTRACTOR received such cancellation notice.  If COMPANY wishes to modify a SERVICE ORDER, the COMPANY REPRESENTATIVE shall cancel the existing SERVICE ORDER and issue a new SERVICE ORDER covering the remaining WORK as modified.

 

5.      NON EXCLUSIVE CONTRACT

 

This CONTRACT is not an exclusive Contract and COMPANY may request similar services from others.  COMPANY does not guarantee any minimum requirement for the WORK to be specified by SERVICE ORDER.  Any estimated quantities or time requirements therefore are for CONTRACTOR’s guidance only and are not binding on the parties.

 

 

6.      PENALTY FOR DELAY OF WORK

 

6.1     A penalty shall be assessed against CONTRACTOR for failure to complete the WORK covered in each and every SERVICE ORDER in accordance with the Final Completion The date specified in each and every SERVICE ORDER. The penalty shall be calculated for each week of delay for the first two weeks of delay and for each day of delay beyond the initial two weeks based on the "Daily Average Cost" (DAC) of the SERVICE ORDER ORDER.

 

6.1.1     The DAC equals the SERVICE ORDER Price, calculated in accordance with Schedule "C", divided by the SERVICE ORDER Duration, which is the total number of days from the Commencement Date to the Final Completion Date indicated in the SERVICE ORDER.  That is,

 

DAC	=	SERVICE ORDER Price (SR)
		SERVICE ORDER Duration (Days)

 

                            The penalty shall be assessed in three stages as follows:

 

(a)    First Stage:

 

For the first week (full seven days) of delay, the penalty shall be one-fourth of the Daily Average Cost.

 

(b)    Second Stage:

 

        For the second week (next full 7 days beyond the first week) of delay, the penalty shall be one half of the Daily Average Cost.

 

(c)    Third Stage:

 

For each day of delay beyond the second week (full 14 days) and up through the Completion of the WORK, the penalty shall be the Daily Average Cost.

 

6.1.2     The the total penalty assessed against CONTRACTOR shall not exceed ten percent (10%) of the total SERVICE ORDER Price.  However, if the portion of the SERVICE ORDER is not completed by the Final Completion Date does not prohibit full utilization of the WORK on this date and does not cause any inconvenience in the utilization of any other utility, then the total penalty shall not exceed ten percent (10%) of the value of the WORK not executed as determined by COMPANY.

7.      WORK BEYOND THE CONTRACT EXPIRATION DATE

       7.1    If, for any reason, the WORK covered under a SERVICE ORDER is not completed by the CONTRACT Expiration Date, CONTRACTOR shall continue to perform the WORK under such SERVICE ORDER until it is completed, even if completion extends beyond the CONTRACT Expiration Date.

       7.2    All terms and conditions of this CONTRACT shall remain valid and in full force and effect until the WORK covered under such SERVICE ORDER is completed and accepted by COMPANY, regardless whether such completion extends beyond the CONTRACT Expiration Date.