Terms and Conditions

Form 741, Revision 1, Aug-14-2017

The following terms & conditions and applicable SQAR’s, together with the purchase order, shall constitute the entire purchase order between Arizona Cast Turbine (ACT) and the supplier.

Acceptance of Order
Commencement of work on any or all items (including without limitation, raw material, piece parts, subassemblies, and services), or shipment of all or any portion of this order, shall constitute acceptance by the supplier upon the terms and conditions and prices set forth herein.

Customer Communication
The supplier must notify ACT of any changes potentially affecting quality (including change of key personnel, change of location, change in manufacturing methods or inspection techniques etc.), changes must be documented and communicated to the buyer prior to shipment.

Right of Entry
ACT and its customers or regulatory agencies reserve the right of entry to any place necessary to determine and verify the quality of the contracted work, records, and material.

Warranties
In addition to all warranties, expressed or implied, the supplier hereby expressly warrants that all goods and services covered by this order will conform to all specifications, drawings, samples and will be of best quality and sufficient for the purpose intended. The warranties of the supplier together with its service warranties and guarantees, if any, shall run to the purchaser and its customers for a period of one year after acceptance, unless the supplier has a standard warranty in excess of one year in which the longer warranty shall control.

Shipping
Each package or freight shipment must be accompanied with a packing slip showing our purchase order number, our part number, item, quantity and weight where necessary. Our purchase order number and item must appear on the invoice and bill of lading. ACT reserves the right to cancel all or any part of this order upon which deliveries have been delayed beyond our specified time and charge supplier with any cost incurred unless deferred shipment has been authorized. Shipments sent C.O.D. without ACT’s written consent will not be accepted.

Inspection/Rejection
Payment for any goods or services under this purchase order shall not constitute acceptance thereof and ACT reserves the right to inspect all purchased goods or services and to reject or revoke acceptance of non-conforming goods or services. ACT may, at supplier's risk and expense; return non-conforming goods or services to the supplier and require a full refund or credit to ACT or hold non-conforming goods or services for disposition by the supplier or rework non-conforming goods or services to detect and correct non-conformances. Any services performed under this purchase order, resulting in irreparable damage of any kind to ACT product (in excess of 2% of the purchase order quantity), does require the supplier to grant a refund to ACT equivalent to the replacement cost of the damaged product.

Insurance
Supplier will maintain at its own expense adequate automobile and property insurance and workman’s compensation in accordance with state regulations. The supplier further agrees that in furnishing materials or the performing of any service under this order that it will hold harmless and defend the buyer from any and all claims by others, not caused by negligence of the buyer, and will assume all costs and expenses in connection therewith.

Assignment
Supplier shall not assign or subcontract this purchase order or any rights hereunder without the consent of the purchaser.

Delivery
In the event that delivery of goods or services under this purchase order is not completed by the agreed upon delivery date, ACT reserves the right without liability and in addition to its other rights and remedies, to terminate this contract by notice and effective upon receipt by supplier as to stated items not yet shipped or services not yet rendered and to purchase substitute items or services elsewhere.

  1. Group 1 general SQAR’s apply to all suppliers;
    1. Control of Records; the supplier agrees to retain any records needed to substantiate significant activities in the manufacturing, inspection, testing, treating, preservation and packing of delivered goods and services. Such records shall be available for review by ACT and its customers or regulatory authorities upon request and shall be retained for (40) years after the last delivery of goods and services on the contract. The supplier must also notify ACT in writing prior to the destruction of these records.
    2. Identification of Product; the suppler shall maintain an identification and verification program to preserve traceability and serialization of ACT product while under its control (e.g., suppliers of x-ray shall always physically serialize/mark ACT product for traceability to the corresponding film location).
    3. Nonconforming product; any departure from purchase order requirements or referenced drawings and specifications must be promptly reported to ACT for disposition of the nonconformance prior to shipment. “The organization’s nonconforming product control process shall provide for reporting of delivered nonconforming product/services within 24 hours of an occurrence” (parties requiring notification can include suppliers, internal organizations, customers, distributors and regulatory authorities).
    4. Certification; the supplier shall submit with each shipment, a certificate of conformance. The certificate must reflect the revision level of the drawing and specifications referenced by the purchase order (if applicable) and a responsible representative of the supplier must sign the certificate.
    5. Packaging; the supplier shall be responsible to package ACT owned property appropriately to prevent damage during shipment, while preventing the potential for FOD. All materials purchased by ACT (e.g., wax patterns and ceramic cores) will not be received for payment if there is any evidence of damage during shipment. If appropriate, ACT will return damaged materials to supplier for review at the supplier's expense (any protective devices accompanying ACT product when shipped to the supplier, shall be maintained during processing and return with the same protective device.
    6. Shipment; by making shipment under this purchase order, the supplier automatically certifies that all corresponding goods and services comply with the purchase order and any applicable drawing and/or specification requirements.
    7. Awareness; the supplier shall ensure that persons doing work under its control are aware of their contribution to product safety and the importance of ethical behavior.
    8. Counterfeit controls; the supplier shall have policy or procedure to cover and apply requirements, practices and methods to mitigate risk of providing counterfeit goods and materials to ACT. Goods and Materials shall not be acquired from independent distributors or brokers unless specifically authorized in writing by the buyer.
  2. Group 2 SQAR’s apply to suppliers of goods and raw materials;
    1. Supplier shall provide a certified test report including the chemical composition, in addition to other properties potentially affecting performance, as required per the ACT purchase order and/or any applicable specifications.
    2. Supplier shall submit a certification that includes cure or manufacturing date for material with acceptability requirements possibly limited by age, the shelf life shall be listed on the container and on the document certifying the material.
  3. Group 3 SQAR’s apply to suppliers of special processes and other services;
    1. The supplier is required to submit a written procedure/technique sheet, to ACT for approval of any special processes used.
    2. ACT must be notified of all changes in supplier process/inspection methods, including changes of manufacturing facility location and, where required, obtain organizational approval.