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PLANNED ENGINEERING SERVICES LTD - CONDITIONS OF PURCHASE

INTRODUCTION

  1. This document comprise PES’ standard Terms and Conditions applying to all legal Contracts which PES enters into when purchasing goods and/or materials. These contracts may relate to individual or ongoing agreements with a particular supplier.

  2. It is the Suppliers’ responsibility to familiarise themselves with the Conditions of purchase, and any associated terms and conditions, which relate to the trading agreement they have with PES.

  3. Where the Order from PES has been made via an agency or other representative of the Supplier that contact must communicate to the Supplier the content of these Conditions and other related documents.

  4. PES reserve the right to amend any aspect of the Conditions at reasonable notice in accordance with clause 14.6.

  5. Additional terms and conditions which relate to individual buying, product or geographical area requirements will be communicated directly to specific Suppliers as appropriate.

1.0 INTERPRETATION

1.1 Definitions. In these Conditions, the following definitions apply:

Business a day (other than a Saturday, Sunday or public holiday)

Day when banks in London are open for business.

Conditions the terms and conditions set out in this document as amended from time to time in accordance with clause 14.6.

Contract each contract between PES and the Supplier for the sale and purchase of Goods in accordance with the Conditions.

Goods the goods and/or materials (or any part of them) set out in the Order.

PES Planned Engineering Services Limited (registered in England and Wales with company number 08320198) whose registered office is at Environmental House, Liberty Centre, Mount Pleasant, Alperton, Wembley, Middlesex, HA0 1TX.

Order PES’ order for the Goods, as detailed on the Purchase Order.

Specification any specification for the Goods, including any related plans and drawings, that is agreed in writing by PES and the

Supplier. Suppliers the person, firm or company from whom PES purchases the Goods.

1.2 Construction. In the Conditions, unless the context requires otherwise, the following rules apply:

  1. A person includes a natural person, corporate or unincorporated body (whether or not having separate legal personality).

  2. A reference to a party includes its personal representatives, successors or permitted assigns.

  3. A reference to a statute or statutory provision is a reference to such statute or provision as amended or re-enacted. A reference to a statute or statutory provision includes any subordinate legislation made under that statute or statutory provision, as amended or re-enacted.

  4. Any phrase introduced by the terms including, include, in particular or any similar expression shall be construed as illustrative and shall not limit the sense of the words preceding those terms. e) A reference to writing or written includes faxes and e-mails

  5. A reference to writing or written includes faxes and e-mails.

2.0 BASIS OF CONTRACT

2.1 The Conditions apply to each Contract to the exclusion of any other terms that the Supplier seeks to impose or incorporate, or which are implied by trade, custom, practice or course of dealing.

2.2 Each Order constitutes an offer by PES to purchase the Goods in accordance with the Conditions.

2.3 Each Order shall be deemed to be accepted on the earlier of:

  1. the Supplier issuing a written acceptance of the Order; and

  2. the Supplier doing any act consistent with fulfilling the Order, at which point the Contract shall come into existence.

3.0 THE GOODS

3.1 The Supplier shall ensure and warrants that the Goods shall:

  1. correspond with their description and any applicable Specification;

  2. be of satisfactory quality (within the meaning of the Sale of Goods Act 1979, as amended) and fit for any purpose held out by the Supplier or made known to the Supplier by PES expressly or by implication, and in this respect PES relies on the Supplier’s skill and judgement;

  3. where they are manufactured products, be free from defects in design, material and workmanship and remain so for the longer of a) 12 months after sale to the consumer; or b) the actual warranty period applied to such Goods by the manufacturer.

  4. comply with all applicable statutory and regulatory requirements relating to the manufacture, labelling, packaging, storage, handling and delivery of the Goods as well as any requirements as set out in writing by PES; and

  5. comply with all the requirements of recognised good manufacturing practice or codes of practice as appropriate.

3.2 The Supplier shall ensure that at all times it has and maintains all the licences, permissions, authorisations, consents and permits that it needs to carry out its obligations under each Contract.

3.3 PES shall have the right to inspect and test the Goods at any time before delivery.

3.4 If following such inspection or testing PES considers that the Goods do not conform or are unlikely to comply with the Supplier’s undertakings at clause 3.1, PES shall inform the Supplier and the Supplier shall immediately take such remedial action as is necessary to ensure compliance.

3.5 Notwithstanding any such inspection or testing, the Supplier shall remain fully responsible for the Goods and any such inspection or testing shall not reduce or otherwise affect the Supplier’s obligations under each Contract, and PES shall have the right to conduct further inspections and tests after the Supplier has carried out its remedial actions.

4.0 DELIVERY

4.1 The Supplier shall ensure that the Goods are delivered, packaged and labelled in accordance with the relevant provisions of the Purchase Order.

4.2 Unless otherwise agreed in advance by PES, time shall be of the essence and all dates in an Order and Contract shall be firm. If the Supplier anticipates any difficulty in complying with any delivery date it should notify PES as soon as is reasonably possible.

4.3 Notwithstanding the provisions of the Order, and for the avoidance of doubt, the Supplier shall ensure that:

  1. the Goods are properly packed and secured in such manner as to enable them to reach their destination in good condition;

  2. each delivery of the Goods is accompanied by a delivery note which shows the date of the Order, the 6 digit Purchase Order number, the type and quantity of the Goods (including the code number of the Goods, where applicable), special storage instructions (if any) and, if the Goods are being delivered by instalments, the outstanding balance of Goods remaining to be delivered; and

  3. if the Supplier requires PES to return any packaging material to the Supplier, that fact is clearly stated on the delivery note. Any such packaging material shall be returned to the Supplier at the cost of the Supplier.

4.4 The Supplier shall, at its cost (including insurance), deliver the Goods:

  1. on the date agreed by PES (Delivery Date);

  2. to the premises as specified on the Purchase Order (Delivery Location); and

  3. during PES’ normal business hours, or as instructed by PES.

4.5 Delivery of the Goods shall be completed on the completion of unloading the Goods at the Delivery Location.

4.6 The Supplier shall not deliver the Goods in instalments without PES’ prior written consent. Where it is agreed that the Goods are to be delivered by instalments, they may be invoiced and paid for separately. However, failure by the Supplier to deliver any one instalment on time or at all or any defect in an instalment shall entitle PES to the remedies set out in clause 5.

4.7 Without prejudice to its other rights PES may:

  1. vary or amend any Order up to 5 days before the relevant Delivery Date;

  2. reject any Goods which do not comply with the Conditions;and/or

  3. refuse delivery of any Goods in accordance with these terms; and

  4. raise a fee which shall be paid by the Supplier in respect of failure to comply to the Conditions, and any rejected Goods shall be returnable at the Supplier’s risk and expense.

5.0 REMEDIES

5..1 If the Goods are not delivered on the Delivery Date, or do not comply with the undertakings set out in clause 3.1, then, without limiting any of its other rights or remedies, PES shall have the right to any one or more of the following remedies, whether or not it has accepted the Goods:

  1. to terminate the relevant Contract;

  2. to reject the Goods (in whole or in part) and return them to the Supplier at the Supplier’s own risk and expense;

  3. to require the Supplier to replace the rejected Goods, or to provide a full refund of the price of the rejected Goods (if paid);

  4. to refuse to accept any subsequent delivery of the Goods which the Supplier attempts to make;

  5. to recover from the Supplier any costs incurred by PES in obtaining substitute goods from a third party; and

  6. to claim damages for any other costs, loss or expenses incurred by PES which are in any way attributable to the Supplier’s failure to carry out its obligations under the Contract.

5.2 If the Goods are not delivered on the Delivery Date PES may at its option claim or deduct 2.5 per cent of the price of the Goods for each week’s delay in delivery by way of liquidated damages, up to a maximum of 15 per cent of the total price of the Goods. If PES exercises its rights under this clause 5.2, it shall not be entitled to any of the remedies set out in clause 5.1 in respect of the Goods’ late delivery (but such remedies shall be available in respect of the Goods’ condition).

5.3 The Conditions shall apply to any repaired or replacement Goods supplied by the Supplier.

5.4 PES’ rights and remedies under the Conditions are in addition to its rights and remedies implied by statute and common law.

6.0 TITLE AND RISK

Title and risk in the Goods shall pass to PES on completion of delivery.

7.0 PRICE AND PAYMENT

  1. The price of the Goods shall be the price as agreed in writing by PES.

  2. The price of the Goods is exclusive of amounts in respect of value added tax (VAT), but includes the costs of packaging, insurance and carriage of the Goods. No extra charges shall be effective unless agreed in writing and signed in advance by PES.

  3. PES shall, on receipt of a valid VAT invoice from the Supplier, pay to the Supplier such additional amounts in respect of VAT as are chargeable on the supply of the Goods.

  4. The Supplier may invoice PES for the Goods no later than the 7 th day of the month following completion of delivery.

  5. PES shall pay correctly rendered invoices in accordance with the credit terms agreed with the Supplier. Payment shall be made to the bank account nominated in writing by the Supplier from time to time.

  6. PES may at any time, without limiting any of its other rights or remedies, set off any liability of the Supplier to PES against any liability of PES to the Supplier, whether either liability is present or future, liquidated or unliquidated, and whether or not either liability arises under the Contract.

8.0 PES MATERIALS

The Supplier acknowledges that all materials, equipment and tools, drawings, Specifications, and data supplied by PES to the no reasonable prospect of so doing, in either case, within the meaning of section 268 of the Insolvency Act 1986, or (being a partnership) has any partner to whom any of the foregoing apply;

9.0 INDEMNITY

9.1 The Supplier shall keep PES indemnified against all liabilities, costs, expenses, damages and losses (including but not limited to any direct, indirect or consequential losses, loss of profit, loss of reputation and all interest, penalties and legal costs (calculated on a full indemnity basis) and all other reasonable professional costs and expenses) suffered or incurred by PES as a result of or in connection with:

  1. any claim made against PES for actual or alleged infringement of a third party’s intellectual property rights arising out of or in connection with the supply or use of the Goods, to the extent that the claim is attributable to the acts or omissions of the Supplier, its employees, agents or subcontractors;

  2. any claim made against PES by a third party for death, personal injury or damage to property arising out of or in connection with defects in Goods, to the extent that the defects in the Goods are attributable to the acts or omissions of the Supplier, its employees, agents or subcontractors; and

  3. any claim made against PES by a third party arising out of or in connection with the supply of the Goods, to the extent that such claim arises out of the breach, negligent performance or failure or delay in performance of the relevant Contract by the Supplier, its employees, agents or subcontractors.

9.2 This clause 9 shall survive termination of the Contract.

10.0 INSURANCE

During the term of the Contract and for a period of 3 years thereafter, the Supplier shall maintain in force, with a reputable insurance company, professional indemnity insurance, product liability insurance and public liability insurance to cover the liabilities that may arise under or in connection with each Contract, and shall, on PES’ request, produce both the insurance certificate giving details of cover and the receipt for the current year’s premium in respect of each insurance.

11.0 CONFIDENTIALITY

11.1 A party (receiving party) shall keep in strict confidence all technical or commercial know-how, specifications, inventions, processes or initiatives which are of a confidential nature and have been disclosed to the receiving party by the other party (disclosing party), its employees, agents or subcontractors, and any other confidential information concerning the disclosing party’s business, its products and services which the receiving party may obtain. The receiving party shall only disclose such confidential information to those of its employees, agents and subcontractors who need to know it for the purpose of discharging the receiving party’s obligations under the Contract, and shall ensure that such employees, agents and subcontractors comply with the obligations set out in this clause as though they were a party to the Contract. The receiving party may also disclose such of the disclosing party’s confidential information as is required to be disclosed by law, any governmental or regulatory authority or by a court of competent jurisdiction.

11.2 This clause 11 shall survive termination of the Contract.

12.0 TERMINATION

12.1 PES may terminate a Contract in whole or in part at any time before delivery with immediate effect by giving the Supplier written notice, whereupon the Supplier shall discontinue all work on the Contract. PES shall pay the Supplier fair and reasonable compensation for any work in progress on the Goods at the time of termination, but such compensation shall not include loss of anticipated profits or any consequential loss.

12.2 Without limiting its other rights or remedies, PES may terminate a Contract with immediate effect by giving written notice to the Supplier if:

  1. the Supplier commits a material breach of any term of the Contract and (if such a breach is remediable) fails to remedy that breach within 5 days of that party being notified in writing to do so;

  2. the Supplier suspends, or threatens to suspend, payment of its debts, or is unable to pay its debts as they fall due or admits inability to pay its debts, or (being a company or limited liability partnership) is deemed unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986, or (being an individual) is deemed either unable to pay its debts or as having

  3. the Supplier commences negotiations with all or any class of its creditors with a view to rescheduling any of its debts, or makes a proposal for or enters into any compromise or arrangement with its creditors;

  4. (being a company) a petition is filed, a notice is given, a resolution is passed, or an order is made, for or in connection with the winding up of the Supplier;

  5. (being a company) an application is made to court, or an order is made, for the appointment of an administrator or if a notice of intention to appoint an administrator is given or if an administrator is appointed over the Supplier;

  6. (being a company) the holder of a qualifying floating charge over the Supplier’s assets has become entitled to appoint or has appointed an administrative receiver;

  7. (being an individual) the Supplier is the subject of a bankruptcy petition or order;

  8. a creditor or encumbrancer of the Supplier attaches or takes possession of, or a distress, execution, sequestration or other such process is levied or enforced on or sued against, the whole or any part of its assets and such attachment or process is not discharged within 14 days;

  9. a person becomes entitled to appoint a receiver over the Supplier’s assets or a receiver is appointed over the Supplier’s assets;

  10. 10. any event occurs, or proceeding is taken, with respect to the Supplier in any jurisdiction to which it is subject that has an effect equivalent or similar to any of the events mentioned in clause 12.2.2 to clause 12.2.9 inclusive;

  11. the Supplier suspends, or threatens to suspend, or ceases or threatens to cease to carry on all or a substantial part of its business;

  12. the Supplier’s financial position deteriorates to such an extent that in PES’ opinion the Supplier’s capability to adequately fulfil its obligations under the Contract has been placed in jeopardy; or

  13. (being an individual) the Supplier dies or, by reason of illness or incapacity (whether mental or physical), is incapable of managing his or her own affairs or becomes a patient under any mental health legislation.

12.3 Termination of the Contract, however arising, shall not affect any of the parties’ rights and remedies that have accrued as at termination.

12.4 Clauses which expressly or by implication survive termination of the Contract shall continue in full force and effect.

13.0 FORCE MAJEURE

13.1 Provided that it has complied with clause 13.4, neither party (the ‘Affected Party’) shall be in breach of the Contract nor liable for delay in performing, or failure to perform, any of its obligations under it if such delay or failure result from events, circumstances or causes beyond its reasonable control (Force Majeure Event).

13.2 The Supplier shall use all reasonable endeavours to mitigate the effect of a Force Majeure Event on the performance of its obligations.

13.3 If a Force Majeure Event prevents, hinders or delays the Supplier’s performance of its obligations for a continuous period of more than 10 Business Days, PES may terminate the Contract immediately by giving written notice to the Supplier.

13.4 The Affected Party shall:

  1. as soon as reasonably practicable after the start of the Force Majeure Event (and no later than 2 days from its start) notify the other party of the Force Majeure Event, the day it started, the likely duration and the effect the Force Majeure Event has on its ability to perform the relevant Contract; and

  2. use all reasonable endeavours to mitigate the effect of the Force Majeure Event on it performance of the relevant Contract.

14.0 GENERAL

14.1 Assignment and other dealings.

  1. PES may at any time assign, transfer, mortgage, charge, subcontract or deal in any other manner with all or any of its rights or obligations under any Contract.

  2. The Supplier may not assign, transfer, mortgage, charge, subcontract, declare a trust over or deal in any other manner with any or all of its rights or obligations under a Contract without the prior written consent of PES.

14.2 Notices.

  1. Any notice or other communication given to a party under or in connection with any Contract shall be in writing, addressed to that party both at its registered office (if it is a company) and its principal place of business (in any other case) or such other address as that party may have specified to the other party in writing in accordance with this clause, and shall be delivered personally, or sent by pre-paid first class post or other next working day delivery service, commercial courier, fax or e-mail.

  2. A notice or other communication shall be deemed to have been received: if delivered personally, when left at the address referred to in clause 14.2.1; if sent by pre-paid first class post or other next working day delivery service, at 9.00 am on the second Business Day after posting; if delivered by commercial courier, on the date and at the time that the courier’s delivery receipt is signed; or, if sent by fax or e-mail, one Business Day after transmission.

  3. The provisions of this clause shall not apply to the service of any proceedings or other documents in any legal action.

14.3 Severance.

If any provision or part-provision of a Contract is or becomes invalid, illegal or unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision or part-provision shall be deemed deleted. Any modification to or deletion of a provision or part-provision under this clause shall not affect the validity and enforceability of the rest of the relevant Contract.

14.4 Waiver.

A waiver of any right or remedy under a Contract or law is only effective if given in writing and shall not be deemed a waiver of any subsequent breach or default. No failure or delay by a party to exercise any right or remedy provided under the Contract or by law shall constitute a waiver of that or any other right or remedy, nor shall it prevent or restrict the further exercise of that or any other right or remedy. No single or partial exercise of such right or remedy shall prevent or restrict the further exercise of that or any other right or remedy.

14.5 Third party rights.

A person who is not a party to a Contract shall not have any rights to enforce its terms.

14.6 Variation.

No variation of the Conditions shall be effective unless it is in writing and signed by PES, notwithstanding the generality of the foregoing, and for the avoidance of doubt, PES, at its sole discretion, reserves the right;

  1. to vary or amend the terms, conditions and requirements of the Supplier Manual at any time on reasonable notice to the Supplier;

  2. to vary or amend the terms of the Conditions (excluding the Supplier Manual) on 14 days’ notice to the Supplier. Any Order due to be delivered on a Delivery Date within such 14 days’ notice period shall not be effected by any variation to the Conditions pursuant to this clause 14.6.2;

14.7 Governing law.

The Contract, and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non- contractual disputes or claims), shall be governed by, and construed in accordance with the law of England and Wales.

14.8 Jurisdiction.

Each party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim arising out of or in connection with this agreement or its subject matter or formation (including non-contractual disputes or claims).