inspection records and certificates, and instruction manuals within one (1)
month after the delivery of the Goods unless otherwise specified in the
Contract.
5. Warranty and Guarantee
The Vendor warrants and guarantees that the Goods are new and meet all
the Specifications and requirements, and are fi-ee from faulty design,
workmanship and material and are of sufficient size and capacity and/or
proper materials so as to fulfill all aspects of technical requirements and
performance of the Goods specified in the Contract.
If any defect originating with the design, materials, workmanship,
operating characteristics, or any breach of the above warranty and
guarantee arises at any time within twelve (12) months from the date
when the Plant is put into commercial operation but not later than thirtysbc
(36) months from the date when the risks of the Goods are transferred
to the Purchaser according to the delivery terms as specified in the
Contract, and the Vendor is notified thereof, the Vendor shall make any
required repairs, replacements or alteration as may be necessary to permit
the Goods to function in accordance with the Specifications, in a timely
manner satisfactory to the Purchaser, at Vendor's own expense including
export packing and transportation from/to the Plant, dismantling and reinstallation
of the Goods, and dispatching the necessary qualified
specialist(s) for rectification.
Should the Goods or any parts thereof be repaired, replaced, altered or reinstalled
to fulfill the foregoing warranty and guarantee, the Vendor shall
provide a new warranty and guarantee of the same conditions for such
Goods or parts thereof being repaired, replaced, alter^l or re-inslalled for
a period of twelve (12) months from the date of completion of such
remedial work.
Should the Vendor fail to take such remedial work in a timely maimer
satisfactory to the Purchaser, the Purchaser may, at its option, take
remedial action at the Vendor's expense or elect to accept the Goods not
meeting the Specifications contained herein with an adjustment to the
Contract Price.
In case of the delivery of the Goods in excess of the quantity ordered, the
Purchaser may, at its option, return or scr^ such excess Goods, with all
related costs being for the Vendor's account.
6. Delivery Guarantee and Expediting
The Vendor guarantees to deliver the Goods to such place and at such
time as is specified in the Purchase Order. Unless otherwise specified in
the Purchase Order, the Supplier shall issue a manufecturing schedule
within four (4) weeks from the date of the Contract followed by periodic
progress reports. Such manufacturing schedule and progress reports shall
include information on the engineering progress, material delivery status
and shop work progress, reflecting the requirements specified in the
Expediting Instructions. The Vendor shall at all times perform its works in
accordance with the manufacturing schedule.
In case of any delays to the manufacturing schedule, the Vendor shall use
all reasonable endeavors to correct or mitigate the effects of such delays in
a manner satisfactory to the Purchaser. When deemed necessary by the
Purchaser to avoid or recover delays, the Purchaser or its agents shall,
have the right to expedite the progress of Vendor's work under the
Contract, and shall be granted access to any and all of the Vendor's, its
sub-supplier's and/or subcontractor's offices and/or shops engaged in the
engineering and/or manufacturing of the Goods. In its agreements with
sub-suppliers and/or subcontractors, the Vendor shall procure the right of
such access for the Purchaser or its agents. Un-priced copies of the
Vendor's purchase orders to the sub-suppliers and/or the subcontractors of
the Goods shall be made avail^le to the Purchaser or its ^ents when
requested. Expediting made by the Purchaser or its agents in no way
relieves the Vendor of its obligations and liabilities under the Contract.
Liquidated Dam^es for Failure to Achieve Delivery Guarantee: Without
prejudice to any other rights the Purchaser may have, if the Vendor fails
to achieve the aforesaid delivery guarantee due to reasons attributable to
the Vendor, the Vendor shall pay liquidated damages to the Purchaser,
within thirty (30) days afier receipt of the Purchaser's invoice, at the rate
of zero point five percent (0.5%) of the Contract Price, irrespective of the
value of the item(s) of the Goods delayed, for e^h complete week of the
delay, subject to a ceiling of five percent (5%) of the Contract Price. The
Purchaser has the right to deduct such liquidated damages from any
payment of the Contract Price due to the Vendor, subject to the condition
set out in Clause 10.
7. Inspection and Test, and Quality Assurance/Control System
The Vendor shall be responsible for establishing and implementing
quality assurance and quality comrol systems, and performing inspections
and tests to ensure that the Goods, including its sub-supplier's materials,
equipment, machinery, etc., conform in each and every respect to the
Contract. Any code inspection required, such as statutory inspection and
governmental regulation, shall be carried out by the Vendor at its
responsibility and expense.
The Vendor shall, at its own expense, carry out at the place of
tnanufacture all such tests and/or inspections of the Goods as are specified
in the Contract. The Purchaser shall be entitled to attend the aforesaid
tests and/or inspections by way of its own duly authorized and designated
inspector.
Should any additional inspections be required at the Purchaser's sole
discretion for reasons attributable to the Vendor, the Purchaser shall be
entitled to charge the Vendor for the costs associated with such additional
inspections including, but not limited to, the inspector's man-hour cost
during working and traveling hours, as well as travel, boarding and
lodging expenses.
The Vendor shall notify the Purchaser of the date and place, unless
olherwise specified, at least ten (10) working d^s prior to the date of
aforesaid inspection and/or tests to be made.
A representative(s) and/or an agent of the Client and/or the Purchaser
shall be granted access to any and all place in the Vendor's, the subsupplier's
and/or subcontractor's shop(s) engaged in the manufacture of
the Goods or processing of the Contract. In its agreements with subsuppliers
and/or subcontractors. Supplier shall procure for Purchaser the
right to conduct such mspections and tests. The Vendor, upon request by
the representative and/or an ^ent of the Client and/or the Purchaser at
wimess inspection, shall make available all the documents and drawings
required for the inspection in accordance with the Contract.
Records and/or certificates of each inspection and/or test shall be
submitted by the Vendor to the Purchaser before delivery of the Goods,
regardless of whether or not die Client and/or the Purchaser attended such
inspection and tests.
The Client and/or the Purchaser shall have the right to carry out any
inspection and/or test of the Goods at any time and any place during
manufacture and prior to shipment, whether such inspections and/or tests
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