Lost Materials Clause Samples
The "Lost Materials" clause defines the responsibilities and procedures when materials provided under a contract are lost, damaged, or destroyed. Typically, this clause specifies which party bears the risk for such losses, outlines notification requirements, and may require the responsible party to replace or reimburse the value of the lost materials. By clearly allocating responsibility and setting out the steps to be taken in the event of loss, this clause helps prevent disputes and ensures that both parties understand their obligations regarding the care and custody of materials.
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Lost Materials. In the event that drill rods, casing, or other equipment become lost, broken or stuck in the hole while drilling at the footage rates, the Owner agrees to reimburse the Contractor at field cost rates, for time and materials expended in recovery attempts, only when the Owner is notified of any bad ground conditions which might result in lost, broken or stuck tools. The Owner will not pay for materials or time if core lost, etc., is due to driller negligence or mechanical failure from defective equipment. If materials are unrecoverable, the Contractor shall be reimbursed at the depreciated value.