Purchasing class or tips

[bacon4life]

When writing specifications for electrical equipment, I am finding that the commercial terms & conditions are a lot harder to work out than the technical descriptions. Does any have some good resources to learn about things like liquidated damages, performance bonds, warranties, indemnification/hold harmless, damages (direct, indirect, consequential etc.) and assignment?

Vendors seem to always ask for changes to the terms & conditions, and our legal department often recommends against accepting any more risk, but allow departments to make our own decisions based on market conditions. I would really like to understand both the legal meaning behind the terms, and also what impact they have on potential bidders.

 

[casseopeia]

This is a very big topic, but you might start by reading the commentary portions any or all of the following,

American Institute of Architects Manual of Standard Practice

Engineers Joint Contract Documents Committee - narrative guide to construction documents

The Legal Aspect of Architecture, Engineering and the Construction Process by Justin Sweet

Additionally, your own State regulations may dictate what can or cannot be written into the Terms and Conditions of a project. Liquidated Damages for example may not be legally enforceable unless you also offer a bonus claus. But that’s something an attorney should look at.




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