National Roofing Legal Resource Center

Contract provision obligating manufacturer and seller of equipment to roofing contractor to furnish equipment that is code-compliant

When purchasing a new piece of equipment, roofing contractors should beware of signing a seller's or manufacturer's standard purchase order agreement or agreeing to a seller's or manufacturer's standard terms and conditions. This agreement could include an express disclaimer of Uniform Commercial Code warranties of merchantability and fitness and will seek to limit the liability of the seller and the remedies available to the buyer in the event of a defect or problem with the product. Prior to making a purchase, the roofing contractor should obtain written assurance the equipment or product the contractor is purchasing complies with all codes, standards and regulations applicable to that equipment or product and its installation. Roofing contractors should be certain to include a provision to that effect in the purchase agreement.

For example, if your roofing company is in the market to purchase a sheet metal folding machine, it's important the sales agreement contain a provision such as the one above that obligates the seller to furnish a machine that will comply with all applicable codes and standards pertaining to the machine in the locality where you intend to install the machine. Such a provision is especially critical considering the 2017 edition of the NFPA 70, National Electrical Code (NEC), which jurisdictions could adopt as of Jan. 1. Article 110 of the 2017 NEC contains a new provision that has been interpreted as requiring all electrical equipment installed or used in a building undergo product testing, evaluation and listing (product certification) by a recognized qualified electrical testing laboratory in accordance with applicable product safety standards recognized by the NEC. If your business is in one of the states, cities, counties or towns throughout the U.S. that has adopted the 2017 edition of the NEC, in the absence of proof your new sheet metal folding machine complies with the NEC, code officials may not permit the newly purchased machine to be used. To avoid this risk and ensure the seller or manufacturer is legally obligated to sell you equipment that complies with applicable codes in the locality where you plan to use the equipment, it's important to include a provision such as the one above in your contract to purchase the equipment.

Equipment and product purchase agreement: The Seller and Manufacturer warrant to the Roofing Contractor that the equipment and product manufactured by Manufacturer and sold by Seller to Roofing Contractor will comply with all codes, standards and regulations applicable to the equipment and product in the jurisdiction where the equipment and product are delivered and intended for use, including the applicable electrical code and OSHA standards. No disclaimer or limitation of warranties of merchantability or fitness or other warranties by Seller or Manufacturer and no term or condition in the sales agreement shall cause or be interpreted to void, disclaim or reduce the obligation of the Seller and Manufacturer to furnish equipment and products that are in compliance with applicable codes, standards and regulations.


7/31/2018



NRLRC and NRCA
    logos
NRLRC Home National Roofing Contractors Association