Beruflich Dokumente
Kultur Dokumente
&
OPGC Ltd.
Team Code: N 21
GOAL
To successfully conclude the Contract without jeopardizing the Professional relations with the
other party.
OBJECTIVE
To release the amount deducted on account of Liquated Damages along with the
payment of interest.
To pay only 2% against the 5% deduction made by OPGC on account of unliquidated
damages for fabric not meeting the requirement.
To release the 3% amount deducted on account of piling of fabric.
STRONG POINTS
Unilateral Deduction: The Company made a “unilateral” deduction of 5% for not
complying with the standard of the fabric. They did not keep the Contractor in loop
while such deductions were being made. There was no discussion on percentage cut.
There was lack of communication from the side of the Company on every account.
Deductions were not the only sole recourse the Company was having. They should
deliberate on the percentage of deductions they were making.
Third Party Delay: The delay was due to the third party who took too much time while
performing the test run. There was no fault on the part of the Contractor as he
successfully delivered the lot to Company at the stipulated time i.e. after 90 days.
Contractor was nowhere responsible for this delay.
Head Office Supply: The Contractor undertook the responsibility to supply the pieces
properly and safely on time only to the head office of OPGC, Clause 1(b).
Workstation Supply: The Company undertook the responsibility of supplying Fire
Retardants Overalls to the workstations of different branches in 15 days as mentioned
in Clause 2(d) and Clause 3 of the Agreement. Hence, no liability on their part.
Warranty Period: The Contractor provided a warranty period of 6 months for all the
products to the Company. They could be easily approached by the Company if they
were having any problem with the products and could have asked for replacement.
De Novo deduction: There was a deduction of 3% because of piling. The Company was
making deductions on account of quality of the fabric again.
Cost on Testing: The Contractor no where in the contract agreed to provide the cost of
the expenditure (as justified by Company in its statement) incurred by the Company for
testing of the fabric.
Calculation of Liquidated Damges: The Contractor agreed to pay a maximum of 10%
for only a genuine estimate of foreseeable damages incurred by the Company which
Company did not do in the current case.
WEAK POINTS
Product Quality: Fabric of the Fire Retardant Overalls of the first lot was not in
conformity with the two parameters set in the Contract i.e. Color Fastness to Light and
Elongation to Break.
Fabric Quality: Piling on the fabric was found in the later stage of testing.
Standard Testing: The Company ensured the standard testing of the fabric by sending
them to Germany, on which the Fabric failed.
Subsequent Delay: Due to default in the fabric, occurred subsequent delay in the supply
of the Lot to OPGC.
Non Objection: The Contractor did not object to the unilateral deduction of 5% on
account of default in the fabric of Lot 1 and Lot 4 thereby agreeing that there was a
material breach of contract by non-adherence to the standards set in the Contract.