Document [sample] LTS-004

Purchase Order Agreement [sample]

To/Vendor:
ABC Company, Inc.
123 Seasame Street Drive
Wonderland, CA 45678


Ship To:
GSE Construction Co., Inc.
1020 Shannon Court
Livermore, CA 94550

Note: A two working day notice is required prior to any material delivery to the job site. No partial
shipments are allowed without prior written notice and approval.
Notify: Oscar the Grouch at 1-510-268-1128

PO Number PO Date Terms FOB Ship Via Delivery Due
123-45678 8/13/2006 See body of
Purchase Order
Somerset<WI.
Full freight
allowed
Best Way See body of
Purchase Order

WHEREAS the Contractor has entered into a Contract dated 8/8/06 with Citys Dirty Water
Department (herein after called the OWNER.)

FOR THE CONSTRUCTION OF: CENTRIFUGE AND ODOR CONTROL SYSTEM
IMPROVEMENTS (herein after called the PROJ ECT.)

NOW THEREFORE it is agreed as follows:

SECTION 1. CONTRACT DOCUMENTS
The term "Prime Contract" as used herein refers to all the General and Special Conditions,
Drawings, Specifications, Addenda, Amendments, Modifications, and all the other documents
forming or by reference made a part of the Contract between the Contractor and the Owner. All
of the aforesaid shall be considered a part of this Agreement by reference thereto and the
Supplier agrees to be bound to the Contractor and the Owner by the terms and provisions
thereof, so far as they apply to the work hereinafter described. One addendum is
acknowledged.




SECTION 2. PURCHASE
The Supplier agrees to furnish all equipment, materials, supplies and services as described in
detail below and in accordance with the plans and specifications. Supplier shall provide eight
sets of submittals by 9/28/2006 .



Cost Code 11173A
Item QTY UOM Description Unit Price Total
1

1 LOT Hydraulic Power Units complete as per
Specification Section 11173A. (4 each)
$397,214.00 $397,214.00
2 4 EA Sludge Pump Control Panels Included Included
3 4 EA Hopper Level Sensors Included Included
4 4 EA Transition Pressure Sensor Included Included
5 1 EA Operator Interface Terminal Included Included
6 1 LOT Software Included Included
7 1 LOT Spare Parts Included Included
8 1 LOT Field Service as quoted Included Included
9 1 LOT Hydraulic Power Tubing for all units Included Included
10 1 LOT Freight to J obsite Included Included
11 1 LOT O & M Manuals Included Included



Tax 0.0875 =$34,756.23

PO Total: $431,970.23

Comments: 1. Hydraulic power Units shall meet all of the requirements of Contract Specification Section
11173A. Any deviations from the Specifications need to be approved as such by the Owner during the
submittal process.
2. The Clarifications and Exceptions Items 1 and 2 of the proposal are accepted and GSE will take care
of this work and associated costs.
3. The Clarifications and Exceptions Items 3 and 4 are acknowledged, however, approval of these
exceptions needs to be requested and approved by the owner during the submittal process.
4. Submittals shall be received by us by September 28, 2006.
5. First Hydraulic Power Unit shall be delivered within 16 weeks after approval of submittals.
6. Second Hydraulic Power Unit shall be delivered within 18 weeks after approval of submittals.
7. Third Hydraulic Power Unit shall be delivered within 20 weeks after approval of submittals.
8. Fourth Hydraulic Power Unit shall be delivered within 22 weeks after approval of submittals.


SECTION 3. PAYMENT
(a). The Contractor agrees to pay the Supplier for the performance of this Agreement the total
sum as noted above subject to additions and deductions for changes agreed upon or determined,
as provided in the project plans and specifications and hereinafter provided. Payment will be
made within 30 days of receipt of invoices as per the following schedule:
1. 20% after approval of submittals.
2. 18.75% after receipt of each Hydraulic Units including O & M Manuals
3. 5% after start-up, receipt of all and Spare Parts and acceptance by the Owner.

When the Contract calls for the Supplier to furnish OPERATION AND MAINTENANCE
MANUALS, payment will not be made for any of the units until such manuals have been received
by the Field Office. When the Contract calls for the Supplier to furnish spare parts and/or the
services of factory representatives for the start-up, testing and commissioning of the equipment
an appropriate amount of payment may be withheld until spare parts and/or factory services are
complete. An amount equal to five percent of the purchase price will be retained until such
equipment has been accepted by the owner.

(b). The Contractor may deduct from any amounts due or to become due to the Supplier any sum
or sums owed by the Supplier to the Contractor in the event of any breach by the Supplier of any
provision or obligation of this Purchase Agreement, or in the event of the assertion of other
parties of any claim or lien against the Contractor or the premises arising out of the Supplier's
performance of this Agreement. The Contractor shall have the right to retain out of any payments
due or to become due to the Supplier an amount sufficient to completely protect the Contractor
from any and all loss, damage or expense there from, until the situation has been satisfactorily
remedied by the Supplier.

SECTION 4. CHANGES
The Contractor may at any time by written order of the Contractor's authorized representative,
make any changes in, additions to and omissions to the Work to be performed under this
Agreement, and the Supplier shall promptly proceed with the performance of this Agreement as
so changed. Any increase or decrease in the Purchase price resulting from such changes shall
be agreed to in writing by the parties hereto. Any claim for adjustment of the Purchase price
under this Section must be made in writing within ten days from the date such changes are
ordered.

SECTION 5. PROSECUTION OF THE AGREEMENT
The Supplier shall furnish all equipment materials and supplies necessary for the performance of
this Purchase Agreement in a proper, efficient and workmanlike manner. Materials that are
furnished by the Supplier here under, shall be furnished in sufficient time to enable the Contractor
to perform and complete his work within the times provided herein. In the event the Supplier fails
to comply or becomes unable to comply with the provisions herein, as to character or time of
performance, and the failure is not corrected within two working days after written request from
the Contractor to the Supplier, the Contractor, by Agreement or otherwise, may without prejudice
to legal remedies, purchase the materials from other sources. Any additional costs incurred by
GSE due to the failure of the supplier to perform will be the responsibility of the supplier.

SECTION 6. APPROVALS
All drawings and Manufacturer's literature shall be submitted for approval of the Architect or
Engineer through the Contractor. Equipment and materials shall not be manufactured or delivered
to the job site with out proper approval of the required submittals.

SECTION 7. COMMUNICATIONS
All communications between the Supplier and the Architect, Engineer or Owner with respect to
the Work shall be transmitted through the Contractor.

SECTION 8. DISPUTES
In case of any disputes between the Supplier and the Contractor regarding interpretation of the
plans and/or specifications of the Prime Contract, Supplier agrees to be bound to the Contractor
to the same extent that the Contractor is bound to the Owner both by the terms of the Prime
Contract and by any and all decisions or determinations made thereunder by the party or board
so authorized in the Prime Contract.

If any action is brought by either party to enforce or have interpreted the provisions of this
Purchase Order, both parties consent that any and all proceedings shall occur in Alameda
County, California.




SECTION 9. ATTORNEY'S FEES
In the event either party institutes suit against the other party, or against the surety of the other
party, in connection with any dispute or matter arising under this Agreement, the prevailing party
shall be entitled to recover a reasonable attorney's fee in addition to any other relief granted.

IN WITNESS WHEREOF, the parties hereto have executed this Subcontract by their proper
officers or duly authorized agents.



_____________________________________ ______________________________
CONTRACTOR SUPPLIER
GSE CONSTRUCTION COMPANY, INC. Schwing Bioset
DATE: DATE:





































1020 Shannon Court - Livermore, CA 94550 - Tel. (925) 447-0292 - Fax (925) 447-0962
Contractor's License 401498 - Equal Opportunity Employer