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

[TimberCutterDartmoor]

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.

[log on tommy]

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.

[TimberCutterDartmoor]

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.

 

Spot on, thanks for that. :thumbup:

[difflock]

You are still screwed if the timber owner has already sold the timber, perhaps for upfront cash.

Then your fight is with the guy hauling it away.

[Wood wasp]

Have you dealt with the owner before and what are your payment terms? If not dealt with him before I'd be looking for money upfront as soon as the machines are on site as you simply don't need the hassle of a late/non payer.

[AlexB]

Don't forget a plus cost clause.

[TimberCutterDartmoor]

Don't forget a plus cost clause.

 

googled that; none the wiser?!

[Marko]

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).

[AlexB]

You've over complicated it chaps, you'll take timber to the value of the job. Plus any additional costs. Such as haulage, marketing, time writing letters because you've not been paid etc. not just the cost of the original harvest and extract.

[slack ma girdle]

Is the person know to you ?

Do they have any references from previous contracts ?

Have they suficient funds for propmt payment ?

 

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