When you're looking to acquire equipment or services from ABB, it's helpful to have a clear understanding of how the process works, especially when it comes to the nitty-gritty of agreements and orders. It's not just a simple click-and-buy scenario; there's a framework in place to ensure clarity for both parties.
At its core, any purchase order you issue is essentially an offer to buy. ABB then formally accepts this offer by issuing a written order confirmation. It's at that moment the agreement truly comes into being, and it becomes a firm commitment, generally non-cancellable by you, the purchaser, unless specific provisions allow for it. Each order stands on its own, a distinct transaction, and with every new order, both sides reaffirm their commitment to the overarching agreement.
If ABB provides you with a quotation, think of it as a proposal. These proposals have a shelf life, typically expiring after thirty days. Importantly, ABB reserves the right to adjust the prices and delivery dates quoted in these proposals. This flexibility is often due to factors outside their immediate control, such as fluctuations in raw material or energy costs, labor expenses, interest rate changes, or even unforeseen events like Force Majeure or new governmental actions like tariffs or tax hikes.
When it comes to services, the pricing is usually based on standard business hours – think weekdays, 8 a.m. to 5 p.m. local time. If you need services outside these hours, like evenings, weekends, or holidays, expect those to be billed at a higher rate, with overtime and Saturday hours at 1.5 times the normal rate, Sundays at double, and holidays at triple. Any associated travel and living expenses will also be added on top. If a specific rate sheet is provided, those are the rates that apply, and they can change without prior notice.
It's crucial to note that ABB's General Terms and Conditions are designed to be incorporated into any agreement or purchase order. They make it clear that any terms you might include on your own purchase order documents are explicitly rejected. For any particular or different terms to apply, they must be explicitly agreed upon in writing by both ABB and you. This ensures that everyone is on the same page regarding the contractual obligations.
Delivery itself is governed by specific terms. For deliveries within the European Union, Norway, Sweden, or the United Kingdom, the standard is INCOTERMS 2020 DAP, which means delivery occurs at an agreed-upon location, but you'll be responsible for unloading. For other locations, these terms need to be mutually agreed upon. If a delivery date is set, it usually starts after the agreement is finalized and any required prepayment or security is provided. Should ABB be solely responsible for a delay, you might be entitled to liquidated damages – a small percentage of the purchase price for each week of delay, capped at 5% of the total price. However, you need to formally claim these damages in writing within a month of the expected delivery time.
