1. How Does Your Company Handle This?

2. Q1: Receipt of a signed contract for approval and full execution vs
Q1: Receipt of a signed contract for approval and full execution vs. one with no signature:  What are the tactics involved in the customer sending out one vs. another, and how are revisions to each handled differently, and what pitfalls does each bring?

3. Q2: Many contracts state: “The Supplier shall be bound to the Purchaser by the terms of this Agreement, and any of the contract documents between the Purchaser and the Owner. Supplier assumes all the obligations and responsibilities which the Purchaser assumes toward the Owner.” If you are able to negotiate on individual terms and conditions, such as say warranty, liquidated damages, does leaving that statement in the document override any individual terms negotiations?

4. Q3: How do you enforce a submittal review timeline?

5. Q4: I have seen a purchase order contract that states: “The equipment to be purchased is custom designed to meet project specifications; therefore the Buyer shall not invoke default purely on account of a late delivery.  ….however, due to the equipment provided being specifically fabricated for this order, the Buyer will not claim default, cancel or impose damages on account of late shipment so long as the Seller can document to the Buyer that he has made bona fide effort to complete timely manufacture of equipment.” Have others seen this clause and been able to use it to avoid liquidated damages?

6. Q5: Schedules of Values are used by our friends the Contractor and Sub-Contractor. There are occasions when the Equipment Supplier is asked to supply one. What are the positives and negatives to requesting progressive payments for a single piece of equipment via the Schedule of Values?

7. Q6: How do you negotiate with contractors who require manufacturers/suppliers to have the same performance/payment bonds and insurance limits when no workers are on-site?

8. Q7: Our question is in regard to Terms of Payment in the Contractor’s purchase contract. Our industry trend for years has been 90% (sometimes 95%) payment after shipment and after contractor receives funds, or on average 57 days. Then the 10% (sometimes 5%) is paid after project substantial completion regardless of whether our equipment is providing beneficial use to the Owner. … (continued)

9. We call these terms 0/90/10 (or 0/95/5)
We call these terms 0/90/10 (or 0/95/5). The “0” is listed as no payment for approval submittals. All our scopes are sent with the terms 20/75/5. 20% after approval, 75% after shipment, 5% retainage after startup. We see this as a starting point for negotiations. The key is an approval billing event. We have been about 75% successful with negotiating to some level of approval payment. This has surprised a number of people but never ask never get.  … (continued)

10. Contractors do not or will not pay with their own funds unless a discount % is offered. Contractors will usually pay if the Owner/Engineer agrees to this payment term or the project contract has these types of terms listed. So my ultimate questions is: Has anyone or can we as an industry make a push to have payment terms allowing for some level of payment for approved approval submittals contained in all contract specifications so our cash flow issues are eased?