Do you have to pay for off site materials?

Paying for off-site goods or materials can be useful, however, it does put the client at risk, for example if the contractor becomes insolvent and the items are then not delivered, even though payment has been made. The client should check the financial status of the contractor to assess the likelihood of insolvency .

What should be included in an off site manufacturing contract?

When drafting or reviewing the contract where off-site manufacture is intended to take place consider the following: A provision to allow the purchaser/employer (or its agent) to inspect quality and progress during the manufacturing process. Issues of quality control should be dealt with in the supply contract.

When do off site materials become the property of the client?

22 of JCT 2016 (DB) which provides that where a payment is made under the contract of the value of the off-site materials, the materials will become the property of the client notwithstanding that delivery has not been made. This clause is “not used” in the SBCC version of the contract.

What do you need to know about off site goods and materials?

A provision to allow the purchaser/employer (or its agent) to inspect quality and progress during the manufacturing process. Issues of quality control should be dealt with in the supply contract. Further, the purchaser/employer may require warranty protection from the manufacturer of the off-site manufactured materials.

Can a contract authorize payment for off-site materials?

The contract needs to specifically authorize payment for off-site materials, outside the payment clause. The specific authorization can include reasonable conditions that you cited. There can be higher risks for off-site materials than with on-site materials that the government can put its hands on and seize if necessary for default.

What do you mean by off site materials?

Materials on site . Off-site construction . Off-site goods and materials – legal issues . Off site, on track . On site . Precast flat panel system . Platform approach to design for manufacture and assembly . Retention of title .