Fleet & Plant Management

Penalty for non deliverance

  • 1.  Penalty for non deliverance

    Posted 26 November 2017 22:46
    ​Good Morning Peeps...
    Looking for some advice, does anyone have a "Penalty" written into contracts when purchasing plant.   ie: the supplier says they can build and deliver prior to a date.... then 9 months later, still waiting...
    Interested to see what others do...
    thanks in advance

    Cindy McDougall
    Fleet Co-Ordinator
    City of Tea Tree Gully
    Modbury SAau

  • 2.  RE: Penalty for non deliverance

    Posted 28 November 2017 16:01
    HI Cindy
    Yes we are discussing that here too
    We have sort legal advise and also discussed with LGP
    I would suggest discussing with LGP as they can provide some good advise
    Give me a call if you wish to discuss


  • 3.  RE: Penalty for non deliverance

    Posted 28 November 2017 16:05


    With all these types of penalties, to apply you must be able to prove LOSS. Generally hard if you have a machine and are renewing, may be possible, if you were yourself contracted to do some work and this special machine and this alone was needed, also then possible, I guess seek advice from the contract experts. We just generally suffer it and factor it into future ratings for those suppliers. However we do impose a 90% payment regime on acceptance, and 10% after successfully commissioning new plant, this can give you some leverage after delivery.