Common use of BACKCHARGE TO SELLER Clause in Contracts

BACKCHARGE TO SELLER. Material/equipment deficiencies which cause expenditure of labor hours and any other associated costs will be accumulated and back-charged to the Seller prior to close-out of the Purchase Order. Copies of Buyer’s inspection deficiency report (Overage, Shortage, and Damaged Report) will be used as supporting documentation. Actual costs (labor hours and any other associated costs) + 15% may be back charged to the Seller to compensate for costs incurred by the company. Prior to expenditure of funds to remedy the deficiency, the Buyer will normally notify the Seller of the existence of the deficiency and the liability for back-charge and request any recommendations for solution. Seller will be expected to respond within 48 hours of notification to these deficiencies. If critical construction schedules are impacted, Buyer, at our option, will proceed with repair and replacement without prior notification to Seller and an equitable negotiated settlement will be pursued at a later time.