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Contract Terms and Conditions
Contract Terms and Conditions
The following terms and conditions should be considered and defined when appointing a biomass installer:
- Dates for possession and completion of the works
- Liquidated and Ascertained Damages for delayed completion: This could be set at a level that is equal to the loss of RHI income
- Warranty periods for all major equipment items, including but not limited to:
- Biomass boilers
- Accumulator tanks
- Heat meters
- District Heating Installations
- Plate Heat Exchangers
- Levels of Insurances required, such as:
- Employers Liability
- Public/Products Liability
- Professional Indemnity
- Defects Liability Period
- Staged payments terms, whether offsite payments are allowed and retentions for stage payments. An example of the staged payments schedule is provided below:
Works | Invoice Amount |
Stage 1 | Cost of works less 5% Retention |
Stage 2 | Cost of works less 5% Retention |
Stage 3 | Cost of works less 5% Retention |
Practical Completion | 2.5% Retention paid |
Final Completion (after 12 months) | 2.5% Retention paid |