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Terms and Conditions for Payments and Carrying Out Work 

Amended: 1st Jan 2024

1. General

1.1 These Terms and Conditions constitute the entire agreement between Power Electrical (“the Company”) and the client (“the Client”) unless otherwise stated in a written contract signed by both parties.

1.2 By accepting an estimate, quotation, or invoice, or by instructing Power Electrical to commence work, the Client agrees to these Terms and Conditions in full.

1.3 Verbal agreements or variations are not binding unless confirmed in writing by Power Electrical.

1.4 These Terms and Conditions are governed by the laws of England and Wales, and any disputes will be subject to the exclusive jurisdiction of the courts of England and Wales.

2. Estimates and Quotations

2.1 All estimates and quotations are valid for 30 days from the date of issue unless otherwise stated. After this period, prices are subject to review and may be revised due to material cost changes or other factors.

2.2 Estimates include only the materials, labor, and tasks explicitly detailed. Any additional work, changes, or variations requested by the Client will incur extra charges, which must be agreed upon before proceeding.

2.3 Power Electrical reserves the right to revise estimates if unforeseen circumstances or conditions arise that affect the scope or cost of the work.

3. VAT and CIS Payments

3.1 All work carried out by Power Electrical is subject to VAT at the prevailing rate of 20%, which will be added to the final invoice.

3.2 If the Client is VAT exempt, valid proof of VAT exemption must be provided prior to commencement of work. VAT exemptions will not be applied retroactively.

3.3 For work carried out under the Construction Industry Scheme (CIS) for main contractors:

• VAT will be charged at 20% under reverse charge VAT rules, and the main contractor is responsible for accounting for the VAT to HMRC.

• The main contractor is solely liable for ensuring that correct CIS deductions are applied and paid to HMRC. Any failure to comply will result in the main contractor bearing full responsibility for outstanding amounts or penalties.

4. Materials and Ownership

4.1 All materials and equipment supplied by Power Electrical remain the property of the Company until full payment has been received and cleared.

4.2 If payment is not made within the agreed terms, Power Electrical reserves the right to remove or recover the materials or equipment, regardless of whether they have been installed. Any costs associated with removal will be charged to the Client.

4.3 Power Electrical retains the right to withhold warranties or guarantees on materials or equipment until payment is received in full.

5. Scope of Work

5.1 The scope of work will be as specified in the estimate or quotation. Any additional items, unforeseen issues, or changes to the agreed scope must be documented and approved in writing.

5.2 Power Electrical reserves the right to halt work if additional issues arise that impact safety, cost, or compliance until written approval is received for any required adjustments.

6. Existing Systems and Faults

6.1 Power Electrical will not be held responsible for pre-existing faults or deficiencies in the Client’s property or electrical systems that may be discovered during the work.

6.2 Any necessary repairs or modifications to address pre-existing faults will be treated as additional work and will be charged accordingly.

6.3 Power Electrical will not be liable for damage caused by the failure of third-party systems, equipment, or materials that were not supplied or installed by the Company.

7. Exclusions

7.1 This agreement excludes the following unless explicitly stated in the estimate:

• Removal or disposal of waste, rubbish, or materials.

• Decoration, restoration, or repair of surfaces or structures disturbed during the work.

• Costs associated with third-party contractors or services.

7.2 If any of the above services are required, they must be arranged in advance and will incur additional charges.

8. Health and Safety

8.1 Power Electrical operates in compliance with all relevant health and safety regulations and will take all reasonable precautions to protect the Client, property, and third parties.

8.2 The Client must notify Power Electrical of any known hazards, risks, or unsafe conditions at the worksite before work commences.

8.3 Power Electrical reserves the right to pause work if unsafe conditions are discovered, with any resulting delays or costs borne by the Client.

9. Payment Terms

9.1 Payment in full is required within 7 days of the invoice date unless otherwise agreed in writing.

9.2 If payment is not received by the due date, Power Electrical reserves the right to:

• Suspend or terminate work.

• Charge interest on overdue payments at the statutory rate under the Late Payment of Commercial Debts (Interest) Act 1998.

9.3 Any bank or transaction charges incurred by Power Electrical due to payment issues will be charged to the Client.

10. Cancellations and Delays

10.1 If the Client cancels or postpones work with less than 48 hours’ notice, Power Electrical reserves the right to charge for any costs incurred, including labor, materials, or loss of business.

10.2 Power Electrical will not be held liable for delays caused by third parties, unsafe conditions, or circumstances beyond the Company’s control.

11. Liability and Limitation of Liability

11.1 Power Electrical is insured for public liability and will take reasonable care to minimize risks or damage during the work.

11.2 Power Electrical is not liable for indirect or consequential losses, including but not limited to loss of income, business disruption, or missed deadlines.

11.3 In the unlikely event of a claim, Power Electrical’s liability is limited to the total value of the contract.

12. Force Majeure

12.1 Power Electrical will not be held liable for failure to perform due to events beyond its reasonable control, including but not limited to natural disasters, strikes, supplier delays, or government restrictions.

13. Workmanship Guarantee

13.1 Power Electrical guarantees all workmanship for a period of 12 months from the completion date, subject to the terms below:

• This guarantee does not cover wear and tear, misuse, unauthorized alterations, or issues caused by pre-existing faults.

• Materials or equipment supplied by third parties are excluded from this guarantee.

14. Dispute Resolution

14.1 In the event of a dispute, both parties agree to attempt resolution through mediation or arbitration before pursuing legal action.

15. Acceptance of Terms

15.1 Acceptance of an estimate, payment of a deposit, or commencement of work constitutes full acceptance of these Terms and Conditions.