Sales terms
Payment, delivery and warranty terms
Every quotation we send carries a payment schedule, a delivery term, a warranty period and an inspection step. This page sets out the four in the form we use in a contract, so that they can be compared before the order is placed rather than negotiated after it.
Payment
Advance payment 30 %, balance 70 % before shipment
The payment schedule on a diesel generator set order is two instalments:
| Instalment | Share of the contract value | When it is due | What happens next |
|---|---|---|---|
| Advance payment | 30 % | After the contract is signed | Production is scheduled when the payment is received |
| Balance | 70 % | Before shipment | The set is released for shipment once the balance is received |
The advance payment is an advance payment against the contract value, not earnest money or a forfeitable deposit. In most civil-law jurisdictions the statutory ceiling for earnest money is 20 % of the contract value, which is why we describe this instalment as an advance rather than as a deposit. The contract states the currency, the bank details, the invoice and the consequences of late payment for the specific order.
Production slots are held against the advance payment. If a project is waiting on internal approval, tell us the expected date at the enquiry stage: we can hold a slot for a stated period, and it is cheaper to agree that in writing than to re-book a slot later.
Delivery
Delivery terms: EXW, FOB or CIF
The delivery term is chosen by the buyer and written into the quotation with the named place or port. The three we quote are:
| Term | We are responsible for | The buyer is responsible for |
|---|---|---|
| EXW – ex works | Making the set ready at our works and loading it onto the vehicle the buyer sends | Arranging the freight forwarder and the vehicle, and all cost and risk from collection onwards, including export clearance, shipping and onward transport |
| FOB – free on board | Moving the set to the agreed port, completing export clearance and loading it on board | The sea freight and the risk during the sea leg |
| CIF – cost, insurance and freight | The freight to the agreed port of destination and the marine insurance for the voyage | Import clearance at the destination port and the charges for collecting the goods |
Whichever term is used, the quotation names it, and the packing, lifting points, dimensions and weights are given with it so that the forwarder can plan the move. If the destination port or the inland leg changes after the quotation, tell us before shipment: it changes the freight cost and, on a CIF term, the insurance.
Warranty
Warranty: 12 months, or 1000 running hours
The equipment warranty runs for 12 months from the ex-works date or 1000 running hours, whichever comes first.
| Item | Position |
|---|---|
| What is covered | Original manufacturing defects in the set as supplied. Parts and technical support are provided free of charge for a covered defect. |
| What is not covered | Damage caused by use or handling, consumables, and wear parts. Normal service items are the operator’s responsibility. |
| Cross-border orders | Warranty is settled by supplying replacement parts. On-site attendance is not included. |
| What we need for a claim | The set serial number, the running hours, the factory test report and a description or photographs of the fault, so that the correct part is sent the first time. |
The warranty follows the set, not the invoice address: a claim can be made by the operator on site as well as by the buyer, provided the serial number and the running hours can be identified. Service intervals in the operation and maintenance manual have to be followed for the warranty to remain valid.
Inspection
Inspection and acceptance
There are two points at which the set is checked, and the first is the one we recommend:
- Factory pre-acceptance (recommended). When the set is complete, the buyer may attend the works to inspect it, run it on load and check the accessory list against the packing list. If travelling is not practical, we carry out the same test and send high-resolution photographs and video for remote acceptance. Shipment is arranged after acceptance.
- Destination port acceptance. On arrival, the buyer opens the crates or the container and checks the quantity and the external condition against the packing list. Any claim for appearance or quantity has to be made in writing within 7 working days of arrival. Internal quality issues are handled under the warranty above.
Witnessed tests are booked with the production slot. Tell us at the order stage if someone will attend, so that the test date can be agreed while the set is still on the line.
Returns and cancellations
Returns, and what replaces them
Every set is built to order – rating, enclosure, fuel tank, control panel and documentation follow the configuration on the contract – so a built set is not a stock item and is not returnable. What protects the order instead is the sequence already described on this page: a witnessed or remote factory acceptance test before shipment, a written factory test report, and a warranty that runs for 12 months or 1000 running hours.
If a set fails the factory acceptance test, it is repaired or re-tested before shipment, and the balance instalment is not due until the set is accepted. If a fault appears after delivery, it is handled as a warranty claim under the terms above. Cancellation before production starts, and cancellation after the advance payment has been made, are dealt with in the contract for the specific order, because material already ordered for the build cannot always be released.
Questions
Questions about these terms
What are the payment terms for a diesel generator set?
30 % of the contract value is paid as an advance payment after the contract is signed, and production is scheduled when it is received. The remaining 70 % is paid before shipment, and the set is released once the balance has arrived. The advance payment is an advance against the contract value, not earnest money.
How long is the warranty, and what does it cover?
12 months from the ex-works date or 1000 running hours, whichever comes first. It covers original manufacturing defects of the set as supplied, with parts and technical support provided free of charge. Damage caused by use, consumables and wear parts are not covered. On cross-border orders the warranty is settled by supplying replacement parts, without on-site attendance.
Which delivery terms do you quote?
EXW, FOB and CIF. The quotation always names the term and the named place or port, together with the packing details, the lifting points, the dimensions and the weights, so that the freight forwarder can price the move. The costs and the risk during transport follow the term chosen, as set out in the table above.
Can we inspect the set before it is shipped?
Yes, and we recommend it. You can attend the works to inspect the set, run it on load and check the accessory list, or we can run the same test and send high-resolution photographs and video for remote acceptance. Shipment is arranged after acceptance; a claim for appearance or quantity after arrival has to be made in writing within 7 working days.
Want these terms on your quotation?
Send the rating, the delivery term you intend to use and the destination port. The quotation comes back with the payment schedule, the warranty period and the inspection step written out for that order.