Secondary Blocks

Customer delays

This guide explains the different parts that make up the block dealing with customer delays.

Introduction

Customer delays

The customer delay block outlines the consequences and steps to be taken when a customer’s actions or inactions cause a delay in the project. These provisions protect the service provider from potential negative impacts of customer delays and help to manage expectations for both parties.

Let’s consider a practical example: Imagine you own a software development company, and you’re working on a project for a client. According to the contract, the client must provide you with certain information, like system requirements or user access, by a specific deadline for you to complete the project on time.

However, the client fails to provide the necessary information on time, causing your team to fall behind schedule. In this situation, customer delay provisions in your contract would come into play. These provisions would specify the actions you can take, such as:

  1. Extending the project deadline to accommodate the delay caused by the client.
  2. Charging the client an additional fee to cover the costs of allocating more resources to catch up on the delayed work.
  3. Following a predefined process to communicate the proposed changes to the client and negotiate a resolution.

By including customer delay provisions in the contract, both you and the client have a clear understanding of what happens when delays occur, protecting your interests and fostering a fair and collaborative approach to resolving issues.

Parts

Delays

This part outlines the consequences of the Customer’s failure to complete its dependencies, which may cause the Developer to miss project timelines or allocate additional resources. It allows the Developer to either extend the timelines or request an increased fee from the Customer.

Process

This part describes the step-by-step procedure to be followed by the Developer and the Customer in case of delays due to the Customer’s inaction. It specifies how the Developer should communicate the proposed changes, how the Customer should respond, and the procedure for negotiation if the Customer disagrees with the Developer’s proposals.

Use of reasonable efforts to achieve original timelines

This part requires the Developer to attempt to meet the original project timelines, despite the Customer’s delays, without resorting to extensions or fee increases. It encourages the Developer to work diligently and to act in good faith.

No breach

This part clarifies that the Customer’s failure to complete its dependencies will not be considered a breach of the Agreement. It helps to prevent potential disputes or legal actions based on the Customer’s delays.

Sole remedy

This part establishes that the remedies provided in the block, such as extending the timelines or paying an increased fee, are the only available options for addressing the Customer’s failure to complete its deadlines. It limits the scope of available remedies and aims to resolve the issue without further complications.

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