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Is this a fair T&C condition in a harvesting contract?


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You're contracted to cut 3000 tonne of timber. Cut and extract rate agreed with landowner who is paying and marketing the timber himself. Small loading area so timber needs prompt and regular uplift.

 

My T&C is that in the event of non-payment, the timber produced transfers into the ownership of the cutter; to me that seems to only safety mechanism.

 

Any comments?

 

Thanks.

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You're contracted to cut 3000 tonne of timber. Cut and extract rate agreed with landowner who is paying and marketing the timber himself. Small loading area so timber needs prompt and regular uplift.

 

My T&C is that in the event of non-payment, the timber produced transfers into the ownership of the cutter; to me that seems to only safety mechanism.

 

Any comments?

 

Thanks.

 

Sounds fair to me although you could modify it so it sounds better. i.e "in the event of non-payment timber up to the value of the contract transfers into the ownership of the cutter".

Otherwise the landowner might think you're being greedy.

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It's 'cost plus'.

 

Definition: relating to or denoting a method of pricing a service or product in which a fixed profit factor is added to the costs.

 

Never heard of this being applied to such a task... it is a common tool in large defense contracts (to cover the contractor when the MoD keep changing their mind about what they actually want).

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