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IACCM Contract Management Forum

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N.M.I.A.L.
2019-11-14 15:27:49

Warranty & Discontinuation of Product

Hi everybody,

Now we have a situation here in terms of warranty and product discontinuation :

A large facility was being constructed which required ~1500 architecturally exposed fixtures of a particular style/model. A Purchase Order was drawn up with terms of Warranty of 10 years. This was in 2014.
Cut to 2019, replacement of 9 fixtures are required (5# attributable under warranty provisions + 4# misused by the Purchaser) and it is now learnt that the fixtures itself is discontinued from the product line since 2017.

It is not possible to install 9 fixtures of a different model / look as these are architecturally exposed fixtures / products.
The Supplier has politely declined to answer the conflict of giving a 10 year warranty ending 2024 and discontinuing the product in 2017.

Q1: Advise on possible ways such a situation has been contractually dealt with.
Q2: How can one estimate the damages towards default by the Supplier in committing to its obligations under the Warranty Period, since the product has been discontinued?

Thanks in Advance
 
 •  IACCM  •   2019-11-14 19:30:49
Product replacement or discontinuation is obviously quite usual - but that doesn't alter warranty obligations. The manufacturer should have stocked sufficient to meet likely needs. Without knowing the value. It is hard to know whether it is worth pursuing them; right now it sounds like they are ignoring you in the hope you just give up.
 
 
 •  N.M.I.A.L.  •   2019-11-18 11:10:39
Hi Tim,

Thanks for your viewpoint and I couldn't agree more with you on this.

However, they have actually discontinued the product and their revised e-catalogue confirms this. I am sure they understand that a Purchase Order from us would just add on to their revenue in multiples at best, to risk such ignorance. Of the 28 product categories they have supplied, the issue affects only 1 of the 28.

The query deals around with
(a) non availability of spare parts of the product and
(b) non availability of the product itself.
 
 
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