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Revision of the ORGALIME SE conditions As the international sale of plants and their installation represent the core business of many companies in the mechanical and electrical engineering industries in Europe, ORGALIME has recognised that these companies would benefit from a set of general conditions for the supply and installation of plants which could be used all over the world.

They are certainly used at a very large-scale. Millions of hard copies have been sold through the years, whereas the electronic use under an ORGALIME licence has increased to a very substantial level. After a first review that resulted in the SE conditions in , the working group has now adopted a new updated text, which results in the SI conditions. The SE conditions have been reviewed in detail. Thus, the review work could be restricted to an update of the SE conditions.

Nevertheless, some material changes have been made. New texts have been inserted and existing texts have been amended. Apart from these material changes, texts have been amended to clarify the meaning. These changes have however not changed the well-balanced nature of the conditions. Some changes may improve the position of the Contractor, whereas other changes may improve the position of the Purchaser. Finally, definitions in the existing Clause 2 have been up-dated and further specified.

The major changes in the conditions are listed below. In the SE conditions completion of the Works was considered to take place when they were taken over. Completion was in fact a synonym for taking-over.

No material change was meant however, so the balance of responsibilities and obligations of the parties has not been amended in this respect. Specific amendments Clause 14 item e and Clauses 15 - 17 These new clauses have been inserted.

Some of the obligations may be quite self-evident, but practice has shown that clear and precise obligations may be useful to prevent any discussions in this respect. Clause 18 According to the new Clause 18, the parties have to appoint a representative who can act on behalf of the respective party during the work on the site.

This clause aims to prevent that the work needs to be interrupted and delayed until a competent person is found to take decisions.

It has now been made clear that this termination may also concern only part of the contract. Compensation shall then be limited to the price of that part of the Works for which the Contract is terminated. Clause 24 former Clause 20 This provision deals with the costs and other consequences of changes in laws, etc.. The consequences may be quite substantial and affect the contractual balance between the parties.

As this is quite a costly and time-consuming procedure, discussions on the financial consequences have been cut off by the provision that the Contractor shall be compensated for the variation work on a time basis. Accordingly, it is now the Contractor who is responsible to clear the Plant for export.

The Contractor is normally in a better practical position to perform this task, being based in the country of export. He has to bear the costs of customs formalities, duties, taxes and other fees resulting from the export procedures. Clause 40 former Clause 37 It is now clearly stated that a period of time within which taking-over of the Works shall take place only starts to run as soon as the Purchaser has fulfilled any preconditions upon which the parties have agreed.

These preconditions of the Purchaser have to be specified in the Contract. The former clause was less clear as it could also refer to preconditions to be fulfilled by the Contractor.

Clause 42 lit. In the revised version any circumstance which is attributable to the Purchaser entitles the Contractor to extend the time for delivery.

In the former text this extension could only occur if the delay resulted from an actual act or omission of the Purchaser himself.

The new text broadens the scope for such extension. Clause 43 former Clause 40 In the SI conditions liquidated damages are payable for each commenced week. Under the SE conditions these damages were only payable for completed weeks. Clause 47 former Clause 44 Items g , h and i have been inserted to clarify that such costs may be separately charged to the Purchaser.

Clause 48 former Clause 45 As a consequence of the new items g , h and i in Clause 47, it had to be specified in Clause 48 whether these items were included in the lump sum price or not.

As the costs concerned are normally not anticipated by the Contractor, Clause 48 provides that these items are excluded from the lump sum price. Clause 51 former Clause 47 If the purchaser fails to pay, the SI conditions explicitly provide for a right of the Contractor to claim recovery costs. The SE conditions did not mention recovery costs, which could be a reason for disputes. Clause 61 former Clause 54 In order to minimise costs and damages it has been provided that the Purchaser must take reasonable measures if a defect occurs and that the Purchaser must comply with instructions of the Contractor in that respect.

Clause 68 former Clause 60 If the Contractor does not remedy a defect, the final period to be set by the Purchaser shall not be less than one week. This precise minimal period was not mentioned in the SE conditions. Clause 69 lit. This amendment takes account of situations where the defect does not affect the use of other substantial parts of the Works. Clause 70 defines a final stop to the liability period of the Contractor: his liability for replaced or repaired parts ends in any case one year from the end of the normal liability period in SE two years from taking over of the Plant.

Clause 73 former Clause 67 Currency and export restrictions, epidemics, natural disasters, extreme natural events and terrorist acts have been added as examples of Force Majeure-events.


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All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you. These General Conditions shall apply when the parties agree In Writing or otherwise thereto. When the General Conditions apply to a specific contract, modifications of or deviations from them must be agreed In Writing. If the Works according to the Contract shall be taken over by separate sections intended to be used independently from each other, these Conditions shall apply to each section separately.


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Condizioni Generali Orgalime 2002 per la fornitura di prodotti meccanici, elettrici ed elettronici


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