The comments below are noted, however the paragraph states “properly incurred by Supplier” and therefore the claims need to be agreed. At this point with the LD’s being placed on non-contractual deliveries (free issue equipment) and the non-contractual back charges being impose, means the claims are not agreed as per our letter dated the 30/04/2015 . Should the claim be agreed prior to the 5th payment milestone the monies owed can be deducted, if not then as per the contract these shall be deducted from the 6th payment milestone.