AGREEMENT FOR THE CONSTRUCTION OF MACHINERY FOR A SHIP
THIS AGREEMENT made this______ day of______, 20__.
BETWEEN
________________________ (insert the name, address etc. of marine engineering company) (hereinafter called ‘The Company’) of the ONE PART.
AND
________________________ (insert the name, address etc. of owner ofship) (hereinafter called ‘the purchaser) of the OTHER PART.
WHEREBY IT IS AGREED as follows:
- The company shall make and sell and the purchaser shall purchase from the company [type and description of machinery] for the ship [name] in accordance with the specification hereto annexed and signed by the parties.
- The purchaser shall on the________________ day of___________ have the said ship placed alongside the quay at the company’s works at__ ready in every respect to receive the said machinery and the company shall fit and complete the machinery on board within__ clear working days from the said date subject to the provisions hereinafter contained.
- The company shall pay to the purchaser the sum of Rs__ as liquidated damages for every day after the lapse of the said__ clear working days during which the said engines and boilers remain unfitted and uncompleted. PROVIDED ALWAYS that any delay in completion shall not be considered a default within this clause or expose the company to the payment of the said damages if and in so far as such delay shall arise by reason of shortage of materials or any strike, lock-out or combination of workmen or cessation or restriction of work by workmen whether the workmen of the company or of any other person, firm or company where such strike, lock-out or cessation or restriction of work has the effect of stopping restricting or delaying the supply of materials to the company or otherwise impeding or delaying them in the progress and completion of the work or from accidents or from the state of the wind or weather or from riots or civil commotions or from any other cause whatever whether or not of a similar nature to those hereinbefore specified not absolutely within the control of the company.
- The purchaser shall pay in respect of the work carried out in pursuance of this agreement.
- The cost as shown by the company’s books including wages materials direct expenses and a due proportion of fixed expenses and establishment charges.
- A commission on the whole as the company’s profit of_______% per cent.
Payment is to be made by the purchaser as required by the company on the basis of cash against expenditure during the progress of the work and the ascertained balance on completion and interest at five per cent per annum to be allowed on expenditure in advance of payments or payments in advance of expenditure as the case may be but no large balances to stand over except bymutual arrangement.
- During the construction of the machinery the purchaser shall have the right to send its inspector into the company’s premises at all reasonable times and such inspector shall be entitled to have full access to and inspection of the machinery during construction and the company shall replace all material used in such construction and shall re-execute all work which such inspector shall for any reasonable cause condemn.
- Should any dispute or difference arise between the company and the purchaser as to the quality of the materials used or of the work done in the construction of the machinery or as to any delay in the final completion and delivery of the same or as to the interpretation of this agreement it shall be referred in accordance with the Arbitration Act 1940 or any statutory modification or re-enactment thereof for the time being in force to an arbitrator to the mutually agreed upon or in case the company and the purchaser cannot agree then to an arbitrator to be appointed by [appointor].
AS WITNESS etc.
[Signatures of or on behalf of parties]
