Para 9.4.8 - Warranty Clause | KartavyaDesk
Original Rule Text
9.4.8 Warranty Clause 1. If included, in the case of Works and Capital Equipment, the Warranty clause in the Contract warrants that Goods supplied by the Contractor would continue to conform to the description and quality during the specified warranty period (usually, 24 months after delivery or 18 months from the date of placement in service, whichever is sooner). Obligations of the contractor under the warranty clause shall survive even though The Goods may have been inspected, accepted, installed/ commissioned, and paid for by the Procuring Entity or the contract is terminated for any reason whatsoever. In the procurement of goods other than capital equipment (and in the case of low-value capital goods, say up to rupees one lakh), a warranty clause is not called for. 2. The Procuring Entity shall promptly notify in writing to the contractor, during the period above if the said goods/ stores/ articles are discovered not to conform to the description and quality or have deteriorated, otherwise than by fair wear and tear (the decision of the Procuring Entity in that behalf being final and conclusive). 3. Upon receipt of such notice, the contractor shall, within 14 days (or within any other period, if stipulated in the contract), expeditiously repair, or replace the defective Goods or parts thereof, free of cost, at the ultimate destination. The Contractor shall take over the replaced parts/ Goods after providing their replacements, and no claim shall lie on the Procuring Entity for such replaced parts/ Goods after that. 4. A penalty of 0.5% (half per cent, or as specified in the contract) of the contract value for every week of delay in response time beyond the specified time as detailed above shall be recoverable from the Performance/ Warranty Guarantee. The maximum penalty for warranty failure will be 5% (Five per cent) of the contract value during the whole warranty period. If there is further such delay after reaching this limit, the Procuring Entity shall be entitled to encashment of the whole of Performance/ Warranty Guarantee Bonds, besides recording the adverse performance of the contractor for future tenders. 5. In case of any rectification of a defect or replacement of any defective Goods during the warranty period, the warranty for the rectified/ replaced Goods shall remain till the original warranty period. 6. If the contractor, having been notified, fails to rectify/ replace the defect(s) within 21 days (or within any other period, if stipulated in the contract), it shall amount to a breach of Contract for default, and the Procuring Entity shall avail any or all remedial action(s) thereunder, including forfeiture of Warranty/ Performance Bank Guarantee.
What This Means
Para 9.4.8 of the Manual for Procurement of Goods, 2017, focuses on warranties for goods, especially works and capital equipment. Think of a warranty like a guarantee: the supplier promises that the goods will work as expected for a certain period. This rule outlines what happens if the goods don't meet the standards during that warranty period. It's important for government employees involved in procurement because it protects the government's investment and ensures that suppliers are held accountable for the quality of their products. It primarily affects contractors who supply goods to the government and the government departments that procure those goods.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Warranty clauses are typically required for works and capital equipment, usually for 24 months after delivery or 18 months from placement in service, whichever is sooner.
- •The procuring entity must notify the contractor in writing if goods don't conform to the description and quality during the warranty period.
- •The contractor is responsible for repairing or replacing defective goods free of charge within a specified timeframe (usually 14 days) upon notification.
- •Penalties apply for delays in addressing warranty issues, deducted from the Performance/Warranty Guarantee.
- •Failure to rectify defects can lead to breach of contract and forfeiture of the Warranty/Performance Bank Guarantee.
Practical Example
The Ministry of Rural Development purchased 100 water pumps from 'Aqua Solutions Pvt. Ltd.' for a total of ₹50 lakhs. The contract included a 24-month warranty. After 10 months, 20 pumps started malfunctioning. The Project Officer, Mr. Sharma, immediately notified Aqua Solutions in writing. Aqua Solutions took 20 days to repair the pumps, exceeding the 14-day limit stipulated in the contract. As a result, a penalty of 0.5% of the contract value per week (₹25,000 per week) was deducted from Aqua Solutions' Performance Guarantee for the delay. If the pumps had failed completely and Aqua Solutions had failed to rectify the issue within 21 days, the Ministry could have forfeited the entire Performance Bank Guarantee.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
When is a warranty clause not required?▼
What happens if the contractor doesn't fix the problem within the stipulated time?▼
How long does the warranty last on a replaced part?▼
What is the maximum penalty for warranty failure?▼
What is the penalty for delay in response time beyond the specified time?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Para 9.4.8 of the Manual for Procurement of Goods, 2017, for Works and Capital Equipment, the standard warranty period is typically defined as:
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