Common use of Inspection by Contractor Clause in Contracts

Inspection by Contractor. Contractor agrees to perform a visual inspection, using its personnel, of all materials and appliances furnished by Operator when delivered into Contractor's possession and shall notify Operator's representative of any apparent defects observed therein so that Operator may replace such defective materials or appliances. If Contractor fails to notify Operator of any apparent defects as provided above, it shall be conclusively presumed that such materials and appliances are free from such apparent defect. Contractor shall not be liable for any loss or damage resulting from the use of materials or appliances furnished by Operator containing latent defects. Upon the termination of this Agreement, Contractor shall return to Operator at the well site all machinery, equipment, tools, spare parts and supplies received by Contractor from Operator or purchased by Contractor for Operator's account and not used or consumed in the operations, in as good condition as when received by Contractor, normal wear & tear excepted. If damage to any Operator's equipment is caused due to sole negligence of the Contractor, same will be repaired or replaced at Contractor's cost. Contractor shall, if requested by Operator also maintain or repair, at its cost, any of Operator's items, on board the Drilling Unit which Contractor is qualified to and can maintain or repair with Contractor's normal complement of personnel and the equipment on board the Drilling Unit provided however that Operator shall at its cost provide all spare parts and materials required to maintain or repair operator's items. However, it shall remain the Operator's basic responsibility and liability to ensure that such items are always in good workable condition.