General Tearms & Conditions

payments

The Price for the total Contract shall be paid in USD

payment structure  TBD

Validity of the offer:  TBD

Contract coming to force

The contract shall come into force upon fulfillment of the following conditions:

–           Signature of the Contract by the Parties.

–           Receipt by Dhuzz Electric Nigeria Ltd. of the down payment

–           payment terms are secured

–           The scope of works and all technical specifications necessary to start the design are definitely defined and approved by the Client

Should such conditions not be fulfilled within (thirty) 30 working days after the signature of the Contract, either Party shall be entitled to treat the Contract as at an end, subject to renegotiation of the Contract.

In such a case, if no agreement was reached within further thirty (30) working days, either Party may be entitled to withdraw the Contract through a written notice. Also, the Contract shall be considered as null and void and no Party shall be liable to the other for any loss or damage

Supply delivery

TBD based on incoterm 2010.

Risks shall pass to the Client upon the Incoterms.

The Title of the Equipment shall be transferred to the Client upon receipt of full payment from client.

Delivery – Storage - Acceptance

a. Delivery- Acceptance of delivery

b. Delivery shall be completed when the equipment sold has been made available to the Client in Dhuzz Electric Nigeria Ltd facilities or ware-houses, or in the facilities or warehouses of the Dhuzz Electric Nigeria Ltd suppliers or subcontractors, regardless of the terms of delivery. This provision shall be valid even if the Contract includes other service such as transportation, erection and commissioning.

c. Unless expressly agreed, the return of delivered equipment shall not be accepted.

d. Acceptance

If the equipment is to be erected or installed by Dhuzz Electric Nigeria Ltd or its subcontractors, the Client or its representative shall carry out acceptance of the equipment erected or installed at the location specified in the Contract and shall issue an acceptance certificate therefore to Dhuzz Electric Nigeria Ltd. However, acceptance of the equipment shall be deemed complete at the first of the following:

−          The day of first utilization by the Client

−          One month after commissioning of the equipment, if the Client has not carried out or had carried out the acceptance thereof. If provision is made for acceptance of the equipment in the plants of Dhuzz Electric Nigeria Ltd. or its agent suppliers or subcontractors, acceptance shall be deemed complete 15 days after Dhuzz Electric Nigeria Ltd. has issued notice to the Client to carry out same.

Change Order

  1. Right to Change
  2. Changes may be initiated either by the Client through the issuance of a RFQ or by Dhuzz Electric Nigeria Ltd. through the issuance of a RFC. A RFQ or RFC shall be submitted in accordance with the prescribed form defined in the Change Order Management Process.

Dhuzz Electric Nigeria Ltd. shall not be required to make any Change unless and until the Client and Dhuzz Electric Nigeria Ltd. have agreed the consequences of such Change in terms of price and/or schedule.

1. Request for Quotation

The Client shall clearly specify in a RFQ its needs and objectives and shall provide any necessary documentation in order to enable Dhuzz Electric Nigeria Ltd. to issue a RFC with a complete quotation and within a reasonable period of time.

If Dhuzz Electric Nigeria Ltd. considers that it cannot answer to a RFQ whatever the reason, Dhuzz Electric Nigeria Ltd. shall notify the Client of its decision as soon as reasonably practicable (with supporting particulars).

Any RFQ shall systematically specify whether the corresponding part of the Works subject to the RFQ shall be suspended or not pending quotation by Dhuzz Electric Nigeria Ltd.

If a RFQ specifies that the part of the Works subject to the RFQ is suspended pending quotation by Dhuzz Electric Nigeria Ltd., an extension of time will be automatically granted to Dhuzz Electric Nigeria Ltd. and the ensuing costs shall be borne by the Client irrespective of its final decision relating to the quotation submitted by Dhuzz Electric Nigeria Ltd.

The Parties shall handle, in a diligent manner and as soon as reasonably practicable, any RFQ on the basis of the Change Order Management Process.

The Client shall pay Dhuzz Electric Nigeria Ltd. reasonable and documented costs

for preparing the quotation requested by the Client if the Change is not ordered.

1.Request for Change

Dhuzz Electric Nigeria Ltd. shall issue a RFC in order to answer a RFQ sent by the Client.

The RFC shall give an estimate of the time and/or schedule impacts as requested by the RFQ and shall specify whether another part of the scope of Works is impacted by the RFQ in addition to the suspended part mentioned in the RFQ.

Dhuzz Electric Nigeria Ltd. is also entitled to issue a RFC as soon as practicable when:

(i)   Dhuzz Electric Nigeria Ltd. considers that an event, an explicit or implicit instruction/information, whatever the nature, has a price and/or schedule impact on the Contract irrespective of any Client’s RFQ

(ii)  Dhuzz Electric Nigeria Ltd. ascertains that a mistake, an omission and/or an inconsistency in the documents provided by the Client has a price and/or schedule impact on the Contract irrespective of any Client’s RFQ

(iii)    Dhuzz Electric Nigeria Ltd. proposes any modification of the contractual scope of Works in the interest of the project Dhuzz Electric Nigeria Ltd. shall estimate the ensuing price and/or schedule impacts and shall require the Client’s decision relating to the suspension or not of the part of the Works concerned by the RFC. Failure of the Client to answer within the period of time indicated in the RFC shall be deemed as a decision to continue to execute the Works according to the last contractual scope of Works. In the event of exceptional circumstances to be proven by the Client, Dhuzz Electric Nigeria Ltd. may accept to discuss with the Client the specific conditions enabling to execute change without any prior agreement on the ensuing price and/or schedule impacts.

1. Determination

If the Parties agree on the price and schedule impacts of a RFQ or a RFC, the Client shall issue an Instruction to Proceed in order to authorize Dhuzz Electric Nigeria Ltd.to execute the corresponding Change.

Without prejudice to Dhuzz ElectricNigeria’s right to payment, a Change Order

shall be issued by the Client accordingly.

If the Parties do not agree on the price and schedule impacts of a RFQ or a RFC, the Client shall notify Dhuzz Electric Nigeria Ltd.of its decision to abandon or not the RFQ or a RFC answering to a RFQ as soon as reasonably practicable.

Unless otherwise explicitly mentioned in a RFC, the period of validity of any RFC shall be ten (10) working days.

Obligations of Dhuzz Electric Nigeria Ltd

a. Dhuzz Electric Nigeria Ltd.shall utilize their best efforts, employing their best engineering practices and high ethical standards of the profession in ensuring the technical integrity and reliability of the Works during the engineering and the installation through the commissioning period. Dhuzz Electric Nigeria Ltd.shall, in accordance with the Contract, with due care and diligence, specify, design, manufacture, install, test and commission all the equipments within the Time for Completion as set forth in clause 12.

b. If during the installation of the Equipment on site Dhuzz Electric Nigeria Ltd.encounters physical obstructions Dhuzz Electric Nigeria Ltd.shall be entitled to recover the additional cost incurred in consequence except if such conditions are due to a fault of Dhuzz Electric Nigeria Ltd.or its sub-contractors. Dhuzz Electric Nigeria Ltd.shall notify the Client in writing of any additional costs which shall be approved by the client before to incurring same. The Client shall respond within 8 (eight) days after receiving this notification failing which Dhuzz Electric Nigeria Ltd.shall proceed with the works.

c. Dhuzz Electric Nigeria Ltd.shall submit to the Client for their approval the time schedule for the installation, the testing and the commissioning of the equipments.

d. Dhuzz Electric Nigeria Ltd.and Client shall agree to the time schedule within 15 (fifteen) days after the Effective Date of the Contract. No material alteration to the time schedule shall be made without the approval of both Client and Dhuzz ElectricNigeria

Suspension during the execution of the contract

a. The Client may suspend the performance of the Contract at any time by giving Dhuzz Electric Nigeria Ltd.three (3) months prior notice In case of suspension of the Contract by the Client for convenience or by Dhuzz Electric Nigeria Ltd., any reasonable charges or expenses incurred in connection therewith shall be borne by the Client who shall reimburse Dhuzz Electric Nigeria Ltd. forthwith upon submission of the relevant invoices. Said charges and expenses shall include but not limited to handling, storage, insurance and labour costs incurred by Dhuzz Electric Nigeria Ltd. and its sub-contractors, financial costs such as extension of the validity period of documentary credit, banks guarantees and insurance policies if any and more generally financial consequences resulting from the extension of time for completion, travel and living expenses of the personnel involve in the project if any. If suspension last more than thirty (30) days, Dhuzz Electric Nigeria Ltd.shall be entitled to terminate the Contract and shall be indemnified as per the termination clause.

b. The Parties shall in a mutual agreement determine the corresponding amount in respect of the cost incurred by Dhuzz Electric Nigeria Ltd.by reason of such suspension.

c. lf the Client lifts the suspension in writing Dhuzz Electric Nigeria Ltd.shall recommence the Works within one (1) month from that decision

Taking Over

a. The Works shall be taken over by the Client when they have been completed in accordance with the Contract, except in minor respects that do not affect the use of the equipment for their intended purpose, and have passed the Tests on Completion as per clause 14 and a Taking-Over Certificate has been issued or deemed to have been issued.

b. Dhuzz Electric Nigeria Ltd. will apply by notice to the Client for a Taking-Over Certificate when the Works are in Dhuzz Electric Nigeria Ltd. opinion complete and ready for taking over.

c. The Client shall within 14 days after the receipt of Dhuzz Electric Nigeria Ltd. application either:

(i) issue the Taking-Over Certificate to Dhuzz Electric Nigeria Ltd. stating the date on which the Works were complete and ready for taking over, or

(ii) reject the application giving his reasons and specifying the work required to be done by Dhuzz Electric Nigeria Ltd.to enable the Taking-Over Certificate to be issued.

d. If the Client fails either to issue the Taking-Over Certificate or to reject Dhuzz Electric Nigeria Ltd.‘s application within the period of 14 days, he shall be deemed to have issued the Taking-Over Certificate on the last day of that period.

e. The Client shall not use any part of the Works unless a Taking-Over Certificate has been issued in respect thereof except where such activity is for the testing of any part of the equipment in the Works

f If nevertheless the Client uses any part of the Works outside the testing activity, that part which is used shall be deemed to have been taken over at the date or such use. The Client shall on request of Dhuzz Electric Nigeria Ltd.issue a Taking-Over Certificate accordingly. If the Client uses any part of the Works before taking over the Dhuzz Electric Nigeria Ltd.shall be given the earliest opportunity of taking such steps as may be necessary to carry out the Tests on Completion.

g. lf Dhuzz Electric Nigeria Ltd.is prevented from carrying out the Tests on Completion by a cause for which the Client or other Contractors employed by the Client are responsible, the Client shall be deemed to have taken over the Works on the date when the Tests on Completion would have been completed but for such prevention. The Client shall issue a Taking-Over Certificate accordingly. The equipment shall not be deemed to have been taken over if they are not substantially in accordance with the Contract.

h. lf the equipment are taken over under this Clause Dhuzz Electric Nigeria Ltd.shall nevertheless carry out the Tests on Completion during the Warranty Period defined in Clause 19 The Client shall require the Tests on Completion to be carried out by fourteen (14) days notice and in accordance with the relevant provisions.

Transfer of risk

The risk shall remain with Dhuzz Electric Nigeria Ltd.and shall pass to the Client after the Take Over Certificate has been issued by the Client. As from delivery, the Client assumes all the risks relating to the possession, custodianship and/or use of the equipment as per the applicable Incoterm, and shall from said date be liable for any damages caused by the equipment.

Transfer of title

a. Dhuzz Electric Nigeria Ltd. retains ownership of the equipment, as defined in the offer agreement, until full payment of the whole price (principal amounts and incidentals) of said equipment.

b. If the equipment have been processed or incorporated in other equipment, Dhuzz Electric Nigeria Ltd. shall own a lien on the processed equipment into which equipment have been incorporated until full payment of the price. The Client undertakes to mention the existence of this reservation of title to third parties to whom/which it may sell the equipment either “as is” or incorporated in a system.

c. Should the Client fail to fulfil his payment obligations, any down payments received by Dhuzz Electric Nigeria Ltd. shall be acquired by it, as compensation for damages, without prejudice to any and all damages which the latter may claim.

d.As from delivery, the Client assumes all the risks relating to the possession, custodianship and/or use of the equipment as per the applicable Incoterm, and shall from said date be liable for any damages caused by the equipment

Warranty

a. Dhuzz Electric Nigeria Ltd. undertakes to remedy any defect resulting from faulty design, bad material or poor workmanship for a period of twelve (12) months from the from the delivery date but not later than Eighteen (18) months after the date of manufacturing.

b. In order to be able to avail themselves of their rights under this clause, the Client shall notify Dhuzz Electric Nigeria Ltd.in writing without delay of any defect that has appeared and shall give them full opportunity of inspecting and remedying them. Upon receipt of such notification, Dhuzz Electric Nigeria Ltd. shall within the shortest time and at their own expense repair, modify or replace, at its option, the defective part/sub-assembly of the equipment following the agreement of both Parties.

c. Any equipment or part of equipment supplied in replacement of a defective one shall be delivered to the Client according to the Contract terms and conditions.

d. The warranty shall only apply to defects that appear under normal operation and proper use, and provided that the Client has fully complied with Dhuzz Electric Nigeria Ltd. counsels and guidance relating to operation and maintenance of the relevant equipment

e. ln particular, the warranty does not cover defects arising from improper operation,

force majeure events such as fire, floods etc, from alterations/modifications or repairs carried out by the Client without Dhuzz Electric Nigeria Ltd. consent in writing, normal wear and tear, or any other causes exterior to the relevant equipment, nor shall the warranty apply to defects arising either from equipment/materials supplied by the Client or from a design imposed by the Client.

f. The equipment or part of equipment supplied in replacement shall be subject to the same warranty conditions as defined here above.

g. lf Dhuzz Electric Nigeria Ltd. refuses to fulfill his obligations under this clause or fails to proceed with due diligence after being required so to do, the Client may proceed to do the necessary work at Dhuzz Electric Nigeria Ltd. risk and expense, provided that he does so in a reasonable manner. Then Dhuzz Electric Nigeria Ltd. warranty shall only apply after Dhuzz Electric Nigeria Ltd. acceptance of such work proceeded by third party.

h. Dhuzz Electric Nigeria Ltd. does not provide any guarantee as to the equipment capacity to achieve the targets which the client sets for itself, from the moment that such targets have not been expressly accepted by Dhuzz Electric Nigeria Ltd.

i. Upon Dhuzz Electric Nigeria Ltd. choice, the warranty is exercised either by providing the Client with a replacement product free-of-charge, or by the product in question being repaired in Dhuzz Electric Nigeria Ltd. workshops. To this end, the defective parts or products are returned to Dhuzz Electric Nigeria Ltd.at the Client’s expense with 30 calendar days as of the point in time the relevant product appears to be defective; Dhuzz Electric Nigeria Ltd. shall pay for the carriage of replacement products or those having been repaired. Failure by the Client to return the alleged defaulting product with the above 30day period would allow Dhuzz Electric Nigeria Ltd.to invoice the replacement product or the cost of the repair.

Under no circumstances does the warranty cover the expenses relating to searching for the defective item on-site, to dismantling and reassembling the product in its environment.

19.10   The warranty of the Equipment will be void if the equipment is not installed by a Trained Dhuzz Electric Personnel or any recommended Trained partner by OEM.

Liability

Dhuzz Electric Nigeria Ltd. shall in no case be responsible for any indirect, incidental or consequential damages whatsoever, such as, but not limited to, loss of profits or revenue, relating to or deriving from the products, services, any order, the present agreement or its termination, non-renewal or expiration. In all cases, whatever the causes or subject of the claim, Dhuzz Electric Nigeria Ltd. liability, with regard to the execution of this Contract, is strictly limited to the total amount of the Contract

Liquidated damages

lf Dhuzz Electric Nigeria Ltd. fails to complete the works within the completion period or within any extension of time granted by the Client, the Client shall notify Dhuzz Electric Nigeria Ltd.

in writing with all documentary evidence(s) within seven (7) working days. Upon receipt and investigation of the Client’s claim(s), if confirmed to be true, Dhuzz Electric Nigeria Ltd. shall become liable, owing and due to pay to the Client 0,5% of the delayed works for each week within ten (10) working days Dhuzz Electric Nigeria Ltd. remains in default, up to a maximum of 5% of the total value of the works delayed. The aforesaid liquidated damages shall be in full compensation for any damage suffered by the Client as a consequence of such delay and in full satisfaction of the Client’s claim(s) for the equipment so affected by the delay.

Confidentiality–Intellectual Property- Publicity

a. Any information, regardless of its nature (technical or commercial) or its support medium, exchanged between the Parties, or to which either party may have access in the context of this Contract, shall be considered by the recipient party as being strictly confidential and exclusively reserved for the purpose of performing the Contract, to the exclusion of any and all other use.

b. Under no circumstances is Dhuzz Electric Nigeria Ltd. bound to provide its manufacturing and product-implementation plans, even if the products are delivered with an installation diagram. The designs, documents and codes forwarded to the Buyer, if any, shall remain Dhuzz Electric Nigeria Ltd. sole property. and are strictly confidential

c. The technology and know-how, whether patented or not, which is incorporated into the products and all the industrial and intellectual property rights related to the products are, and shall remain, the exclusive property of the Seller, and any information pertaining thereto shall be considered by the Client as being strictly confidential, including the information set forth in the drawings and documents which may be provided to it.

Consequently, the Client undertakes not to communicate said information, whether willingly or not, to any third party and further undertakes to only use it for the products’ operating and maintenance requirements.  Any right to manufacture spare parts, or to have such manufactured, is hereby excluded.

d.The terms and conditions for using software and databases are set forth in the licences which accompany them. However, regarding third party’s technology, such as software, embodied in the products (hereafter  the Program ), the Client is granted a non-exclusive and permanent right to use the Program for the sole purpose of using the products for the use for which they are intended

e. The Client undertakes to comply with the terms of the offer and in particular with the instructions for use of the Program or Dhuzz Electric Nigeria Ltd. technology contained in any furnished documentation as the case may be. Consequently, the Buyer undertakes not to copy, reproduce, decompile, reverse engineer, disassemble or otherwise seek to reconstitute the source-code of the Program or of Seller’s technology. Should the Buyer not fully comply with the above provisions, the Client shall bear all and any consequences, including any damages whatsoever, resulting there from

Force Majeure

23.1 If any Party is prevented from performating any its obligations under this Contract due to circumstances beyond its control, such as labor conflicts, stoppage of operation, delay or prevention of materials, change of legislation, governmental prohibition, currency restrictions, natural phenomena, transport possibilities, war, rebellion, riots, blockade or other kinds of force majeure, the obligations contained in this Contract shall be suspended until such time as the Party concerned, after the discontinuance of such obstacle, is again in a position to perform its obligations.

23.2 If the hindrance of performance exceeds a period of more than six (6) months, either Party shall be entitled to terminate this Contract by giving a prior thirty (30) days written notice to the other Party.

Termination

24.1 Dhuzz Electric Nigeria Ltd. may unilaterally and automatically terminate the Contract without the Client being entitled to claim any indemnity whatsoever in this respect, in the following cases:

  • Fifteen (15) days after sending a formal notice left unremedied that the Client breached any of its obligations under the Contract.
  • with immediate effect in the event of:
  1. Court-ordered, or out-of-court dissolution or liquidation,
  2. an event of force majeure, the consequences of which last for more than six (6) weeks,
  3. the contractual delivery times being overrun, if such cause the maximum amount of penalties to be reached.
  4. If suspension last more than thirty (30) days.

24.2   ln the event of termination, the Client shall pay Dhuzz Electric Nigeria Ltd.for the goods in transit, delivered equipment and the costs of materials, goods or services reasonably ordered for the performance of the Contract. Such equipment, or services shall become the property of the Client upon such payment being made by them.

Anti-corruption undertakings

In recognition of the principles enshrined in the various pertinent international and regional conventions on combating corruption and to ensure compliance with the anti-corruption laws applicable to the activities under the Agreement and any other anti-corruption laws otherwise applicable to the Parties or  to the ultimate parent company,

25.1  The Client, in respect of the Agreement and the matters that are the subject of the Agreement, warrants that neither it nor to its knowledge anyone on its behalf, has made or offered nor will make or offer any payment, gift, or promise or give any advantage, whether directly or through a CLOSE FAMILY MEMBER or other intermediary, to or for the use of an PUBLIC OFFICIAL, where such payment, gift, promise or advantage would be for purposes of:

  1. Influencing any act or decision of such PUBLIC OFFICIAL;
  2. Inducing such PUBLIC OFFICIAL to do or omit to do any act in violation of his or her lawful duties;
  3. Securing any improper advantage; or
  4. Inducing such PUBLIC OFFICIAL to use his or her influence to affect any act or decision of any department, agency or instrumentality of any government or public enterprise.

25.2 The Client, in respect of the Agreement and the matters that are the subject of the Agreement, warrants that it has not made or offered and will not make or offer any payment, gift, or promise or give any advantage, whether directly or through intermediaries, to or for the use of any PERSON(other than a PUBLIC OFFICIAL) insofar as such payment, gift, promise or advantage would be for purposes of inducing such PERSON to do or omit to do any act in violation of his or her lawful duty or to secure any improper advantage , or otherwise to do or refrain from doing something that would violate the laws applicable to the activities under the Agreement.

25.3  The Client shall cause his personnel and Subcontractors to comply with the obligations set forth in this Article 25.3 and to warrant the same under the terms of their agreements with any subcontractors. In particular, the Client shall perform Anti-corruption Compliance Due Diligences on all major Subcontractors and Dhuzz Electric Nigeria Ltd.reserves the right i) to request proof of and or documentation relating to such Due Diligences and, where necessary ii) to reject or request replacement of non-complying Subcontractors.

25.4  The Client represents and warrants that no PUBLIC OFFICIAL or CLOSE FAMILY MEMBER owns or possesses, directly or indirectly, shares or any other beneficial interest in the Client (other than through ownership of publicly traded securities that is not sufficient to constitute a controlling interest), or is a director, officer or agent of the Client, except for any ownership, interest or position that the Client has disclosed to Dhuzz Electric Nigeria Ltd.in writing. The foregoing representation and warranty will continue so long as this Agreement remains in effect. The Client agrees to notify Dhuzz Electric Nigeria Ltd.promptly and in writing of any developments that would or might affect the accuracy of the foregoing representation or warranty. In any case, if a PUBLIC OFFICIAL or CLOSE FAMILY MEMBER owns or acquires, directly or indirectly, shares or any other beneficial interest in the Client , or is or becomes a director, officer or agent of the Client, the Client shall take  appropriate steps to ensure that such PUBLIC OFFICIAL or CLOSE FAMILY MEMBER avoids any conflict of interest and complies with the laws applicable to him /her which prohibit conflicts of interest on the part of PUBLIC OFFICIALS and complies with the anti-corruption provisions described in the sub-articles 25.1 and 25.2 above.

 25.5  The Client shall promptly give NOTICE to Dhuzz Electric Nigeria Ltd. of any investigation or legal proceeding initiated against the Client by any public authority relating to an alleged violation of applicable anti-corruption laws by the Client, his Subcontractors or his/their personnel / the Client’s personnel in relation to operations and activities performed under the Agreement.

25.6  Without prejudice to any other rights or remedies Dhuzz Electric Nigeria Ltd. otherwise may have hereunder or at law, including but not limited to damages for breach of the Agreement, if any of the undertakings or requirements of this article 25 have not been complied with or fulfilled by the Client in any material respect, Dhuzz Electric shall have the right to suspend and/or terminate the Agreement for the Client’s default with immediate effect pursuant to the applicable laws.

Governing law

This Agreement, and the rights and obligations there under, shall be governed by the laws of the Federal Republic of Nigeria.

Dispute Resolutions

The parties shall use their best endeavours to negotiate and procure an amicable resolution of any dispute arising in connection with this Agreement.

In the event that the parties are unable to resolve such a dispute, either party shall refer the dispute to Arbitration for determination by a Sole Arbitrator, in accordance with the Arbitration and Conciliation Act 1998, CAP A18 Laws of the Federal Republic of Nigeria 2004, and any statutory modifications made pursuant thereto. The Arbitrator shall be a Fellow of The Chartered Institute of Arbitrators (United Kingdom). The seat of arbitration shall be Lagos, Nigeria.

The language of the arbitration shall be English Language and the award made pursuant to the arbitration shall be final and binding on parties to the contract.

Any aggrieved party to this contract shall reserve the right to seek interim preservatory reliefs from a court of law, prior to or pending reference to and/or determination of any dispute referred to Arbitration.