Acceptance

Definition

Acceptance is an essential stage in the life of a contract.

On completion of certain items, each tranche or the complete contract, the Administration, either alone or jointly with the contract-holder, conducts a series of verification procedures. These procedures, as specified in the contract, are designed to check compliance with the conditions of the contract of the goods or services provided by the contract holder. On completion of these procedures, the Administration confirms acceptance in principle of the services and this decision is notified to the contract holder.

Consequences

The consequences of the acceptance decision are significant. This decision:

  Leads to transfer of ownership of the goods or services;
  Marks the start of any warranty periods;
  Initiates the procedure for payment of the outstanding balance for the items, tranche or complete contract.

Other decisions by the public authority following verification

On completion of verification procedures, the public authority can take one or other of the following decisions if the goods or services fail to meet contractual requirements:

  Adjournment : the Administration allows the contract holder an additional period for submitting goods or services which comply with the contract,
  Acceptance with price reduction : the Administration considers that the goods or services, while not fully meeting the conditions of the contract, can nevertheless be used as is, subject to a reduction in the contractual price taking due account of the extent of the defects observed,
  Rejection :the Administration refuses the goods or services as supplied.