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Is this a reasonable clause in a contract and would you accept it?

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    Is this a reasonable clause in a contract and would you accept it?

    Hi All,

    Is this a reasonable clause in a contract and would you accept it?

    6 Warranty
    6.1 The warranties given in this clause are additional to the warranties given by the Company elsewhere in this Agreement.
    6.2 Where in connection with the provision of the Specified Services the Company supplies any goods supplied by a third party, the Company warrants and agrees that where possible it will assign to the Agency or the Client the benefit of any warranty, guarantee or indemnity given by the supplier of the goods to the Company.
    6.3 Defective work by the Company, its directors, employees, Consultant(s) or substitute(s) will be corrected by the Company at its own cost and in its own time as required or as specified by the Agency or the Client.
    6.4 In carrying out the Specified Services the Company warrants that it will, whether or not is using its own equipment, or intellectual property or that of the Client, ensure that it complies with all security requirements reasonably required by the Client.

    Thanks,
    Untouchable1

    #2
    6.3 and 6.4 are pretty standard. Fixing stuff in your own time is a good indication that you are outside IR35. If a business screws up it has to fix it at no cos, a permie doesn't.

    Dunno about 6.2

    You have had it checked by QDOS or B&C ?
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    Comment


      #3
      Originally posted by northernladuk View Post
      6.3 and 6.4 are pretty standard. Fixing stuff in your own time is a good indication that you are outside IR35. If a business screws up it has to fix it at no cos, a permie doesn't.

      Dunno about 6.2

      You have had it checked by QDOS or B&C ?
      6.2 is fairly standard - in simple terms, if you install hardware then the client gets to use the warranty on it if it breaks when you've buggered off. Same applies if you supply software that has a warranty / guarantee.

      Comment


        #4
        Professional Indemnity Insurance should cover you from any issues arising under clause 6.3.

        Comment


          #5
          Originally posted by Untouchable1 View Post
          Is this a reasonable clause in a contract and would you accept it?
          Yes and yes.
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            #6
            Originally posted by Untouchable1 View Post
            6.3 Defective work by the Company, its directors, employees, Consultant(s) or substitute(s) will be corrected by the Company at its own cost and in its own time as required or as specified by the Agency or the Client.
            It's pretty standard for fixed price contracts, but obviously it means you have to factor all bugfixing time into how much you charge, unless you want to do it for free.

            Comment


              #7
              Originally posted by borderreiver View Post
              It's pretty standard for fixed price contracts, but obviously it means you have to factor all bugfixing time into how much you charge, unless you want to do it for free.
              In reality how many clients enforce this, it's all good for IR35

              Comment


                #8
                Thanks for all the responses, they have put me at ease.

                To answer one of the questions above, the contract is currently with QDOS.

                Thanks,
                Jamie

                Comment


                  #9
                  I tend to extended the clause "if it breaks you've got to fix it in your own time" by adding a specific period of time in.

                  Does anybody else do something similar?

                  GE

                  Comment


                    #10
                    I think this OK.

                    My long experience is that there are very few bugs you'll need to fix.

                    I've never had more than about two and usually fixable within two or three hours and anything that isn't my bug is blindingly obvious i.e. in a section of code I didn't write.

                    Basically they want to cover themselves because the guy who developed it will be able to fix it in a jiffy whereas anyone else will sit there for days reverse engineering.

                    Even though I haven't had a contract with this in, fair enough in my view and as the others say puts you outside IR35, which is not to be sniffed at.
                    I'm alright Jack

                    Comment

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