Elkay Interior Systems, Inc. Terms & Conditions

SECTION I: GENERAL TERMS OF AGREEMENT

1. GENERAL STATEMENT OF WORK: This document shall serve as a statement of terms and conditions between the Customer and Elkay Interior Systems, Inc. (“EIS”). Refer to Addendum I of this Terms and Conditions Agreement for all other details and obligations.

2. APPLICATION OF EIS TERMS AND CONDITIONS: EIS Terms & Conditions shall apply to all to EIS scope and transactions, as outlined in Quotes and Sales Order confirmations provided to customers. EIS Terms & Conditions shall prevail in instances where a corresponding customer purchase order (P.O.) is provided unless expressed otherwise by an EIS representative.

3. CUSTOMER CREDIT: EIS reserves the right to determine Customer credit worthiness, and this contract is contingent upon EIS credit review process. Should Customer’s creditworthiness be diminished, as determined by EIS. EIS may cancel and terminate this contract without penalty or further obligation upon notice to Customer.

4. PAYMENT METHODS AND TERMS:

A.      Payment terms are set forth on the EIS customer quote.

B.      Payment instructions are provided for multiple payment methods. If Customer chooses to pay by credit card, EIS reserves the right to pass along any associated credit card fees directly to the Customer unless barred by State statutes. Fees are direct transaction costs and shall not include additional markup or surcharges by EIS.

5. AUTHORIZATION TO INCUR BILLABLE COSTS: Receipt of a signed quote, and/or purchase order, and/or deposit (when required) is considered authorization to start manufacturing and performance under the quote. If Customer is not able to take full delivery within the 60 days of the specified delivery date, EIS shall, at its discretion, segregate the inventory and bill Customer for the Products that are available for shipment. For the portion of products that Customer is unable to take delivery of within such specified delivery date, Customer shall be responsible and liable for any charges, costs, fees, and expenses EIS incurs in warehousing and shipping such products.

6. FINAL SCOPE AUTHORIZATION: Pricing (exclusive of applicable taxes, shipping rates, etc., as described in Section VI) will be confirmed when all materials, fabrics, and finishes have been selected, finalized, and approved. Quotes provided by EIS Prior to final approved materials, fabrics, and finishes may be subject to change.

7. EIS RIGHT TO ADJUST CONTRACT: EIS will honor the pricing noted on this contract for orders delivered within (6) six months from the date of quote execution unless specified otherwise. After such period, EIS reserves the right to adjust pricing based on, without limitation, changes to costs of materials, labor, or services and/or changes to freight rates scheduled for delivery beyond this date. Increases shall be formally submitted, in writing, to the customer for acknowledgment. Failure to acknowledge increases may directly impact lead times.

8. CUSTOMER REQUESTED SCOPE CHANGES

A. EIS shall issue an acknowledgment of scope changes via a Sales Order adjustment document

B. Late additions to the contract may require additional lead time and additional billable shipping charges, which shall be borne by Customer.

C. Refer to Product Restocking and Disposition Policy section for details related to this subject.

9. TERMS OF CONTRACT TERMINATION

A. Customer request to terminate contractual agreement shall be submitted in writing and formally acknowledged and accepted by EIS.

B. Customer shall be responsible for all billable services rendered, material and labor costs incurred up through the date of termination. Refer to Product Restocking and Disposition Policy section for details related to this subject.

10. PRODUCT RESTOCKING AND DISPOSITION POLICY

A. Should a customer-driven change in scope or contract termination eliminate the need for work-in-progress or finished goods, EIS will use commercially reasonable efforts to reallocate materials and product deemed by EIS as reusable. Reallocated materials and product will be subject to a restocking fee of 20% of the unit selling price.

B. Custom materials and manufactured items that cannot be returned or canceled, as determined by EIS, shall be paid by Customer pursuant to updated invoice. EIS will hold custom items for 30 days from date of cancellation, after which time the associated items will be disposed of in any manner EIS deems fit and at Customer’s cost. Shipping charges will apply

11. LEAD TIMES: Lead Times will vary based on product line and geographic origin. Refer to language on quote/proposal for lead times specific to your order.

12. STORAGE FEES: If delivery dates are changed within 2 weeks of the scheduled delivery date, and the new delivery date is greater than seven (7) days from the scheduled delivery date, Customer agrees to pay a product storage fee that will be calculated from the date of notice to the final date of delivery.

13. FREIGHT SERVICES:

A. Freight will be provided and billed to the Customer unless the EIS is notified that Customer wishes to arrange its own freight (at its own cost and expense). EIS shall deliver the products F.O.B. Shipping Point. Delivery dates given by EIS are based on prompt receipt of all necessary information to be provided by Customer. EIS will use reasonable efforts to meet such delivery dates but does not guarantee to meet such dates. Failure by EIS to meet any delivery date does not constitute a cause for cancellation and/or damages of any kind.

B. EIS will make a good faith effort to deliver product at the time requested time of day but reserves the right to deliver product within a 4-hour window. Back charges for deliveries occurring within this window will not be accepted. Delivery delayed due to weather, Acts of God, Inter-border Customs inspections, Federal regulations related to truck driver hours of service or any other causes outside the reasonable control of EIS will not be subject to this window.

C. Customer acknowledges and agrees that Common Carrier (LTL) shipments are not guaranteed for specific days or times and are subject to change based on the carrier scheduling, to be determined during the shipping process. EIS is not liable for scheduling conflicts or delays that may arise due to LTL shipping, financially or otherwise. Customer is responsible for providing necessary information for proper delivery of product based on the conditions of the delivery site, as well as personnel for receiving and helping to unload said delivery. Failure to provide necessary and accurate information regarding the delivery site or personnel to receive Product may cause delays in receipt of the product and additional costs, which shall be paid by the Customer.

D. Contract Carrier shipments are scheduled for specific days. Changes in scheduling by the Customer may cause delays or additional shipping costs, which shall be incurred by Customer

E. Customer takes responsibility for all additional incurred costs due to schedule changes by Customer, or inability to deliver product due to lack of access at the delivery site, however caused.

F. Customer or authorized recipient shall have means to unload product available at final destination. EIS reserves the right to add fees if a liftgate is required or if product cannot be offloaded and delivery has to be rescheduled.

14. RECEIPT OF PRODUCT

A. Items should be checked against the bill of lading and packing list to ensure product is received complete and in good condition.

B. If product is received damaged or incomplete, EIS shall be notified by the receiving party within 24 hours of delivery.

C. Customer or Authorized Recipient shall verify the condition of the shipment and notify EIS of any damage 800-837-8373 within 24 hours. Product that is crated or boxed will be considered “Concealed,” and will be given an extension for damage reporting. All concealed damages must be reported within 48 hours of receipt of delivery. Transfer of title occurs upon FOB shipping point. EIS contracts with the carrier and therefore will provide reasonable assistance to Customer in efforts to reconcile damage claims. EIS shall not be responsible for failure by Customer to document damage or contact EIS upon delivery of Product. If Customer notice any damage (tears, crushing, holes, rattling or loose parts, etc.) ask for a joint inspection and specify on the carrier's receipt.

D. Special note: Customer may not refuse damaged shipment unless the damage has made the goods worthless. In cases of partial damage or loss, Customer shall accept the entire shipment and EIS shall determine whether it can be repaired or retained with an allowance. Damaged freight shall be retained by Customer until a possible claim can be settled.

E. For a shipment shortage if part of Customer’s shipment is missing. Customer shall count the pieces and check the number indicated on its delivery receipt. Customer shall provide EIS with a precise description of the shortage on both Customer’s copy and the carrier’s copy of the freight bill. A complete description, for illustration purposes only, would be 3 cartons freestanding chairs (6 chairs) short, not three cartons short. Customer shall contact EIS as soon as possible 800-837-8373. Customer’s notice of shortage on both copies of the freight bill acts as written alarm for terminal personnel who will make every attempt to locate Customer’s missing freight. If it becomes necessary to have Customer’s shipment shortage traced, Customer shall contact the EIS immediately. EIS will contact the carriers OS&D department, (over, short & damaged) at the local terminal.

F. EIS, its sole discretion shall determine whether a product meeting the specifications set forth herein may be returned. Product that has been opened, put in use, onsite for more than 14 calendar days, considered non-restockable or deemed obsolete/excess stock, in each case as determined by EIS, may not be returned. For the avoidance of doubt, the foregoing shall not modify or alter EIS's warranty obligations with respect to any product provided hereunder.

SECTION II: TERMS OF AGREEMENT FOR PROJECT SERVICES

1. NOTICE OF LIEN RIGHTS: As required by the Construction Lien Law, EIS hereby notifies Customer that persons or companies furnishing labor or materials for the construction on Customer’s land may have lien rights on Customer’s land and buildings if not paid. Those entitled to lien rights, in addition to EIS are those who contract directly with Customer or those who give the owner notice within sixty days after they first furnish labor and materials for construction.

2. INSURANCE

A. Workers Compensation and Employer’s Liability Insurance as required by applicable laws.

B. Commercial General Liability Insurance with limits not less than

  1. $5,000,000 for each occurrence (the combined single limit for bodily injury and property damage)

  2. $1,000,000 personal liability

  3. $1,000,000 Aggregate for Products Complete Operations

  4. $1,000,000 General Aggregate

  5. $100,000 Fire Damage (any one fire)

C. Automobile Liability Insurance (bodily injury and property damage), including coverage for owned, hired, and non-owned automobiles used during installations. The limits for liability shall not be less than $1,000,000 combined single limit for each accident.

D. Customer shall carry insurance as noted:

  1. Customer shall carry builder’s risk.

  2. Customer shall carry property insurance for the building and site

3. CUSTOMER OBLIGATIONS, GENERAL TERMS AND CONDITIONS

A. EIS shall have no responsibility for any third-party contractor or consultant (including, for example, but not by way of limitation, engineers and architects) services not provided pursuant to this Contract for Product and will coordinate the services of Customer’s other contractors and consultants only if such coordination is expressly undertaken pursuant to other sections of this Contract for Product. EIS, will not be responsible for construction means, methods, techniques, sequences or procedures, including without limitation for the timeliness or quality of contractor or consultant performance or for the acts or omissions of any contractors or consultants or any other person performing any of the work on the Project, or for the failure of any of them to perform work in accordance with the final plans.

B. EIS is not a licensed architect or engineering firm. It is the customer’s obligation to satisfy all municipal, state, and federal code requirements, including but not limited to drawing or stamped drawing submissions or structural load calculations. Customer shall be responsible for obtaining all permits and paying for all costs associated with the obtaining of those permits.

C. Customer shall promptly respond to EIS’s questions and requests for information and approval and make all finish material and equipment selections in a timely manner and within such time as shall permit EIS to satisfy its obligations hereunder. Any delay or increased cost resulting from Customer’s delay in providing information to EIS shall be borne by Customer.

D. Customer is responsible for notifying EIS of any changes that occur to the original architectural drawings or on-site during the construction progress. EIS may contact the Customer’s General Contractor to seek field dimensions to ensure coordination and fit up with final building dimensions. Failure to provide the dimensions shall not release Customer from possible additional charges should the existing space be constructed differently from the drawings provided to EIS. Any changes to manufactured product will be billed to Customer.

E. EIS shall not enforce or otherwise be responsible for warranties provided by the Project’s contractors, consultants, material suppliers, or equipment suppliers.

F. Customer shall provide EIS and its agents with access to Project space as requested by EIS to inspect existing conditions. Customer shall provide access to completed Project space for purposes of photographically recording the completed design and product in place for EIS’s project records and commercially reasonable business representation.

4. DESIGN SERVICE, TERMS, AND CONDITIONS:

A. Customer shall be responsible for budget and final costs of the Project. During the design process, should the scope of work, specification, quantity or quality of products, or any other terms be modified or altered, this Quote shall be altered by a change order (which may be done through email communication) to reflect the change in design and product order, if applicable, and any associated changes to price and/or delivery price, as determined by EIS. Change orders require the written agreement of both parties, which may be done through email confirmation and may affect Project and Product cost and timing. The Product is separate from the cost of the Project as installed, which is subject to a separate charge.

B. Customer shall provide current and accurate architectural drawings in AutoCAD format for all new construction, rebuild, or remodel projects. EIS plan sets will be developed based on the building footprint and elevations provided in the architectural drawings. EIS shall rely on such architectural drawings in the performance of its services hereunder.

C. EIS plan sets are based on architectural drawings, and Customer shall notify EIS of any deviations due to code requirements, building conditions, subcontractor coordination, or any other changes driven by third-party contractors or consultants.

D. Customer may not use the drawings, schedules, specifications, or other instruments of service provided hereunder for any project other than the Project or for any other purpose. EIS (or, as appropriate, its subcontractor) is the author and Customer of all drawings, schedules, specifications, and other instruments of service provided hereunder and retains all statutory and common law copyrights and intellectual property, proprietary or other rights. Upon termination of this Contract for Product by EIS due to the Customer’s breach, Customer shall no longer have the right to reproduce or use drawings, schedules, specifications, and other instruments of service or copies thereof. Customer may not disclose to any third party such drawings, schedules, specifications, and other instruments of service, except as expressly provided herein and with respect to the Project. EIS's written permission must be obtained prior to using such drawings, schedules, specifications, and other instruments of service or copies thereof for future additions or alterations to the Project.

E. If Customer, without EIS approval, modifies the drawings, schedules, and/or specifications, EIS is not responsible for any loss, cost, or damage relating to the use or application thereof.

F. All computer files containing conceptual imagery, illustrations, and all images within the contract documents in the form of artwork or other graphic design or copyrighted and remain the intellectual property of EIS. All rights reserved.

5. EIS-CERTIFIED INSTALLATION TERMS AND CONDITIONS:

A. If EIS Certified Installation has been purchased, Customer shall accompany an EIS representative on Project completion walk-through to identify shipping damage, missing product or any incomplete work.

B. The installation price is based on non-union labor. If union labor or prevailing wage requirements are imposed, the difference between quoted non-union scales and the union scales shall be the responsibility of Customer.

C. Installation price assumes standard working days and hours, defined as Monday-Friday, from 6:00 AM – 6:00 PM in the time zone that the work is conducted. If work is required outside of standard work times, EIS reserves the right to re-price at an increased rate.

D. All EIS installations shall be warrantied against defects in workmanship for a period of one year from the date of substantial completion. Warranty of installation workmanship will be nullified when contractors other than EIS perform the installation.

SECTION III: LIMITED WARRANTY

1. GENERAL WARRANTY STATEMENT

A. EIS warrants the products sold will be free from defects in material and workmanship under normal use and conditions for the time periods stated below from the date of receipt for, subject to the terms contained herein.

B. Warranty period begins from the point of delivery to the Owner through the stated period above as determined by product type. See table below. No extensions will be made for customer storage before use.

C. Except for the express warranties set forth herein, neither EIS nor the manufacturer makes no representations or warranties, express or implied, under this agreement or under the law, by statute or otherwise, and EIS and the manufacturer specifically disclaim any other warranties, whether written or oral, express or implied, including any warranty of quality, merchantability or fitness for a particular purpose or non-infringement

2. CLARIFICATIONS AND TERMS OF WARRANTY EXCLUSION

A. Warranty excludes defect caused by abuse, alterations to the product not executed by EIS, improper or insufficient maintenance, exposure to extreme climate conditions, improper use or operation or normal wear and tear.

B. EIS product line is intended for indoor environments, unless expressed otherwise in the product specifications. Product shall be stored and/or used in an environment that is watertight, free of debris and temperature/humidity controlled. Any damage caused by exposure to the elements or non-typical conditions shall not be covered under warranty. Non-typical conditions shall include product that may be indoors, but exposed to ultra-violet rays or climate conditions with high salt-air content. This language shall prevail, even where EIS is apprised of the final destination of order.

C. Where Customer-specified product is used, all manufacturer warranties shall supersede EIS warranty statements

D. Warranty does not cover damage resulting from the failure of a third-party’s specification

E. The cost of field repairs performed by non-EIS personnel, agents or representatives will not be reimbursed unless expressly authorized in writing by EIS prior to the repair.

F. Warranty applies to the original consignee only

G. Component pieces, or non-finished goods, such as chair glides, table glides, castors, hinges, upholstered seats and other parts subject to normal wear have no warranty coverage. Please contact Customer Service at 800-837-8373 or cs@elkayinteriorsystems.com for a quote on replacement parts.

3. CLAIM SUBMISSION AND OBLIGATIONS:

A. The EIS warranty comes with dedicated attention from sales, project management, and customer service. Customer service and claim support are available at 800-837-8373 or cs@elkayinteriorsystems.com. To expedite your claim, please have the location information (City, state, and Site ID) and photos of product failure readily available.

B. If an item shows any sign of structural fatigue, it should be taken out of service immediately and EIS notified. Continued use of the product is at Customer’s risk and EIS Warranty will no longer be valid.

C. In the event of a warranty claim, EIS shall have the option in its sole discretion to either (1) replace the product, (2) repair product or (3) refund the purchase price of the product.  Customer may be asked to returned product prepaid as directed to inspect defective item at our facility in order to establish cause.  The replacement or repaired product is warranted for the remainder of the original warranty period. Replacement product value will be assessed based on amount of time product is in service. Elkay reserves the right to assign value/credit based on the remaining life of the warranty at the time of claim submission.

ADDENDUM I

  1. Prices for products are set forth on proposal provided.  Customer shall pay or reimburse EIS on demand for all taxes, tariffs, duties, fees and costs imposed on, in connection with, subject to, or measured by any transaction by EIS and Customer hereunder (as solely determined by EIS), in addition to the prices or fees described herein.

  2. Customer acknowledges that EIS’s estimates of probable construction cost concerning the Project will be based solely upon EIS’s informed judgment and without the benefit of substantial or detailed cost estimating efforts and agrees that it shall not rely on such estimates, which may be modified based on additional information received b EI concerning the Project.

  3. This Contract for Product supersedes all negotiations and prior agreements concerning the Project and is intended as a complete and exclusive statement of the entire agreement between Customer and EIS concerning the Project.  This Contract for Product shall be binding upon and to the benefit of the parties hereto and their respective successors and assigns.  This Contract for Product may not be assigned (except to an affiliate) by Customer without the prior written consent of EIS. EIS shall have the right to appoint subcontractors to fulfill its obligations hereunder.

  4. EIS shall invoice Customer for installation charges upon substantial completion of installation of product for the Project. Customer shall pay such invoices upon receipt of the invoice.

  5. If Customer does not pay EIS any amount when due, or if Customer defaults in performance of any of its obligations or covenants hereunder, EIS may, without incurring liability to Customer and without prejudice to EIS's other lawful remedies (1) terminate EIS's obligations hereunder, (2) declare immediately due and payable all of Customer’s obligations to EIS, (3) change credit terms with respect to any further work, (4) suspend or discontinue any further work and/or (5) eliminate or disregard any pricing concessions or discounts provided to Customer hereunder. In addition, EIS may exercise any of the aforementioned remedies with respect to any outstanding Contract for Product between EIS and Customer in the event Customer fails to pay any amount when due hereunder or defaults in the performance of any of its obligations or covenants hereunder.

  6. Customer agrees to reimburse EIS for all costs and fees including, but not limited to, attorneys' fees, incurred by EIS and collecting sums owed by Customer.  Customer agrees to pay a late payment charge of the lesser of 1.5% per month, or the maximum amount allowable by law, on all amounts not paid in full when due, payable on EIS's demand. Customer shall not set off amounts due to EIS against claims Customer may have against EIS.

  7. If this Contract for Product is terminated for any reason other than due to EIS's material, uncured breach, then Customer shall pay to EIS the Product purchase price, installation services, work-in-process and other costs incurred and due hereunder up through the date of termination, as well as expenses incurred by EIS in connection with the termination, including but not limited to cancellation fees payable to subcontractors or vendors, payable immediately upon receipt of invoice.  Termination by either party shall require a 14-day written notice.

  8. EIS shall not be in breach of this Quote to the extent that any delay or failure in its performance of its obligations under this Quote results from any cause beyond its reasonable control, such as acts of God, changes in law or imposition of executive orders that significantly impact the services and products provided hereunder, acts of civil or military authority, embargoes, pandemics, epidemics, war, riots, insurrections, fires, explosions, earthquakes, floods, unusually severe weather conditions, labor problems or unavailability of parts.  In the event of any such excused delay, the time for performance shall be extended for a period equal to the time lost by reason of the delay.

  9. Prevailing party fee clause: The parties also agree that the prevailing party shall be entitled to attorneys' fees and costs for prosecuting or defending any claims arising out of the breach of this Agreement.

  10. This Quote, its exhibits and any other related agreement between the parties hereto shall be governed by Wisconsin law without regard to its conflict of law principles.

  11. Any disputes, claims or controversies arising under or relating to this Contract for Product shall be determined by binding arbitration.  The arbitration shall be administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules.  The arbitration shall take place in Milwaukee, Wisconsin.  Judgment on any award rendered by the arbitrator(s) may be entered in any court of competent jurisdiction.

  12. In the event a portion of this Contract for Product is declared invalid by court of competent jurisdiction, the remaining provisions shall remain in full force and effect, unaffected by such declaration of invalidity.

  13. In no event shall either party be liable to the other for any indirect, consequential, incidental, punitive, exemplary, special, including without limitation, damages for lost profits, business interruption, cost of capital, or loss of use of capital under this Quote or any related agreement between the parties, regardless of the legal theory under which such damages are sought, and even if it has been advised of the possibility of such damages.

  14. EIS is an independent contractor.  Neither party is authorized to incur obligations or make promises on behalf of the other party.

  15. This Quote and any exhibits attached hereto contain the entire agreement of the parties with regard to the matters referenced herein and supersede any prior agreements or statements as to such matters.

Revision Date: 10/03/2023