*Procurement & Installation Flashcards
(16 cards)
List the steps of procurement
1.) client signs off on sales agreement
2.) designer issues purchase order to vendor
3.) vendor issues acknowledgement back to designer
4.) designer checks acknowledgement for accuracy
5.) the vendor issues in invoice to the designer or party responsible for payment
What Is a packing list?
a document that lists the contents of a shipment, including the items, their quantities, and their packaging details
What is a bill of lading?
a detailed list of a shipment of goods in the form of a receipt given by the carrier to the person consigning the goods
What is a freight bill?
an invoice that details the costs of moving freight from one location to another
What are the responsibilities of an interior designer in an FF&E and Construction contract?
-Acts as the owner’s representative
-Assist owner in coordinating schedules and installation
- Review shop drawings and submittals
- Can suggest the owner reject non-conforming work
- Prepare change orders for the owner to authorize
- approve small change orders if they don’t affect cost or delay delivery
What are the responsibilities of the owner in an FF&E and Construction Contract?
- Preliminary inspection of goods at the job site
- Preform an acceptance inspection after completion of installation
What are the responsibilities of the vendor in an FF&E and Construction Contract?
- prepare purchase orders
- Prepare order acknowledgments
- Supervise and pay for materials or labor associated with completed work
- Warehouse goods *if in contract agreement
- Accept risk and loss of goods until owner acceptance or full payment is received
- delivery and installation and test of goods *if in contract agreement
- Rectifying any non-conforming or defective goods
What is the UCC?
Uniform Commercial Code = sets rules for commerce within the US for items that are considered tangible and movable
The UCC code covers sales contracts, product liability, warranties, ownership of goods, and risk.
What are common carriers?
Offer delivery services to the public. Responsibility of goods is with titleholder.
What are contract carriers?
Have contracted delivery services only with particular companies
What are private carriers?
Own and operate their own trucks to move their own products. Responsibility for goods lies with the private carrier.
What does FOB Factory mean?
Free on Board Factory
the vendor will load goods onto the truck, train, or another mode of transportation. Then, the goods’’ title, or ownership, transfers to the buyer at the factory. The shipping costs and risks also transfer at that location. So, the buyer needs to be prepared to pay for the transportation and have the goods insured.
What does FOB factory freight prepaid mean?
the seller is responsible for paying the cost of shipping, while the buyer is responsible for the goods at the point of origin
what does FOB destination mean?
The seller retains the legal title to the goods until they reach the location of the buyer
During installation, who is ultimately responsible for product assembly?
the vendor or seller of the goods
The vendor is responsible for delivery and installation. Installation also includes testing if required by the contract documents.
When goods are shipped FOB destination, who has title to them while they are in transit?
The seller
FOB (free on board) destination means that the seller retains title to the goods while in transit because the title is transferred at the destination (delivery).
