Delivery refers to receipt of the contracted supplies into the acquiring entity's possession as specified under the contract. Particular care must be taken with phased delivery. If a contractor fails to deliver supplies by the delivery dates or to the delivery point specified in the contract there may be consequences for the contractor under the contract. The contract manager should ensure that various requirements regarding risk of loss or damage to the goods or services are carried out in accordance with the contract provisions. Contract managers should ensure that, prior to goods or services being delivered, appropriate risk management measures are put in place in relation to the security and storage of goods or services. Where appropriate, the contract manager should also ensure that appropriate insurance coverage for the goods or services has been arranged through the ComCover Insurance or other appropriate scheme. "Acceptance" is the term used to describe the procedure by which the acquiring entity determines whether the goods or services meet contract requirements. In many contracts, acceptance of the contract deliverables will occur periodically throughout the life of the contract. In services contracts, services may be delivered on a continuing basis. On delivery, goods or services need to be inspected or reviewed and, where necessary, tested against the standards specified in the contract, before formal acceptance under the contract is completed. In the case of goods the process of inspecting or testing the contract deliverables is easier to apply than it is for services. In the case of se services, performance measures such as service levels and compliance with reporting requirements may be part of the acceptance process. Generally, the contract should set out the process for acceptance. This will usually require the contractor to provide the contract deliverables in the form specified by the contract. This may include providing a formal document to the contract manager and supporting evidence, such as the results of an acceptance testing, that the goods or services meet the contract requirements. The contract will usually set out a period in which the acquiring entity is able to decide whether to accept or reject the goods or services. The acquiring entity may also be able to give conditional acceptance, and this should be regulated by the terms of the contract. Where conditional acceptance is agreed by the acquiring entity, the contractor will normally be required to remedy any defects identified in the acceptance process within a specified period of time. If the contractor fails to do this, the acquiring entity may be entitled to have remedial work performed at the contractor's expense or be able to reduce the amount payable to the contractor. If goods or services are accepted and are subsequently found to be defective, the acquiring entity's remedies may be limited to relying on any warranties in the contract. |
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