SCRAP ALLOWANCE Clause Samples

A Scrap Allowance clause defines the permitted amount of material waste or defective items that can occur during a manufacturing or production process without penalty. Typically, this clause specifies a percentage or quantity of scrap that is considered acceptable, and any scrap produced within this limit is not subject to additional costs or claims. By establishing clear expectations for allowable waste, the clause helps manage risk and prevents disputes over minor production inefficiencies.
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SCRAP ALLOWANCE. In some operations there is a certain amount of unavoidable scrap. The normal time lost making and handling scrap which cannot be avoided by close attention on the part of the operator is added to and becomes part of the standard time per piece. The operator turns in his production separately - good pieces and scrap pieces.
SCRAP ALLOWANCE. Contractor will plan the work in such a way that the wastage to be minimum Following scrap allowance will be allowed. Beyond the allowance, the wastage will be chargeable to the contractor on NFL rate +25% + All Taxes will be charged extra.: S No PARTICULARS SALVAGEABLE A STRUCTURE 2.5 % B PIPE 3.0 %
SCRAP ALLOWANCE. 31.01 The Company agrees to accept the responsibility and to pay the ▇▇▇▇▇▇▇ for the loss of moulds for the following reasons: 1. Defective Cores - where this is the cause of a defective casting. 2. Slag in Casting - where the reason for slag is not caused by the ▇▇▇▇▇▇▇ leaving loose sand in the sprue hole or pouring basin. The Company will be as fair as possible in assessing reasons for defects of this kind. 3. Shifts - where shifts have not been caused because the ▇▇▇▇▇▇▇ has failed to keep his/her pattern guides and flask guides in proper condition. 4. Mis-runs - where cold metal is at fault.
SCRAP ALLOWANCE. 31.01 The Company agrees to accept the responsibility and to pay the ▇▇▇▇▇▇▇ for the loss of moulds for the following reasons: 1. Defective Cores - where this is the cause of a defective casting. 2. Slag in Casting - where the reason for slag is not caused by the ▇▇▇▇▇▇▇ leaving loose sand in the sprue hole or pouring basin. The Company will be as fair as possible in assessing reasons for defects of this kind.
SCRAP ALLOWANCE. In some operations there is a certain amount of unavoidable scrap. Since the incentive pay plans pay for good pieces only, the normal time lost making and handling scrap which cannot be avoided by close attention on the part of the operator is added to and becomes part of the standard time per piece. The operator turns in his/her production separately - good pieces and scrap pieces.
SCRAP ALLOWANCE. (For Free Issue Material only):