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Contract terms and conditions

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The following terms and conditions should be considered and defined when appointing a biomass installer:

  • Dates for possession and completion of the works
  • Liquidated and Ascertained Damages for delayed completion: This could be set at a level that is equal to the loss of RHI income
  • Warranty periods for all major equipment items, including but not limited to:
    • Biomass boilers
    • Accumulator tanks
    • Heat meters
    • District Heating Installations
    • Plate Heat Exchangers
  • Levels of Insurances required, such as:
    • Employers Liability
    • Public/Products Liability
    • Professional Indemnity
  • Defects Liability Period
  • Staged payments terms, whether offsite payments are allowed and retentions for stage payments.  An example of the staged payments schedule is provided below:


Invoice Amount

Stage 1

Cost of works less 5% Retention

Stage 2

Cost of works less 5% Retention

Stage 3

Cost of works less 5% Retention

Practical Completion

2.5% Retention paid

Final Completion (after 12 months)

2.5% Retention paid