Quality Guarantee Deposit Clause Samples

Quality Guarantee Deposit. Within 14 days after the delivery and acceptance certificate is issued, Poly Changda Engineering shall pay a quality guarantee deposit to Suiyuenan Expressway Company. The quality guarantee deposit shall be limited to 3% of the project delivery and settlement amount. The quality guarantee deposit paid shall bear no interest. In addition, if the performance bond (as set out below) has been paid by Poly Changda Engineering before completion of the overhaul work, the quality guarantee deposit will not be retained at the same time. The quality guarantee deposit shall not be deducted from any interim payment for the overhaul work. After the overhaul work is delivered and accepted and the performance bond is refunded, 3% of the project delivery and settlement amount shall be deducted on a one-off basis as the quality guarantee deposit. Upon the expiry of the defect responsibility period as set out below and at the request of Poly Changda Engineering to refund the quality guarantee deposit, Suiyuenan Expressway Company shall, within 14 days, verify whether Poly Changda Engineering has fulfilled its obligations during the defect responsibility period. If Poly Changda Engineering has fulfilled its obligations during the defect responsibility period, Suiyuenan Expressway Company shall refund the quality guarantee deposit to Poly Changda Engineering. Otherwise, Suiyuenan Expressway Company is entitled not to return the quality guarantee deposit. During the defect responsibility period, which will be the one-year period from the date of the actual completion of the overhaul work pursuant to the Proposed Overhaul Agreement, Poly Changda Engineering shall generally be responsible towards the delivered work during the defect responsibility period. If the defects are found to be attributable to (i) non-compliance of the materials, equipment or operating techniques used by Poly Changda Engineering with the requirements under the Proposed Overhaul Agreement; or (ii) the negligence of Poly Changda Engineering or failure of Poly Changda Engineering to fulfil its contractual obligations under the Proposed Overhaul Agreement, the expenses of examining and fixing the defects shall be borne by Poly Changda Engineering. If Poly Changda Engineering fails to fix the defect within the defect responsibility period, Suiyuenan Expressway Company is entitled to arrange for fixing the defect by its designated entity, provided that the expenses incurred from such an arrangement shall be bo...