Terms of Trade

MLM Electric Terms & Conditions


Acceptance of Conditions

By placing a work order or accepting a quotation, the customer hereby accepts the following conditions, which may be varied only in writing by MLM Electric.

Terms of Payment

Our standard Terms of Payment are as follows:
All final job invoices will be paid within 14 days of issue.
A late payment fee of 10% of the original invoice amount will be incurred and compounded for every month the invoice remains outstanding past its due date and charged from the first overdue day. Alternatively this fee may instead be charged from the date of job completion at MLM Electrics discretion.
The customer will also be liable for any debt recovery costs should this be deemed necessary.

For installation works:
Monthly progress claims will be made and these will include:
All unfixed materials at site.
All materials and other equipment stored off site because of delays in construction or unavailability of site access.
All approved variation works in progress.
80% of all unapproved variations of works in progress.
In addition, initial progress claims will also include up to 10% of the contract value for mobilisation, project setting up, commitment to initial procurement of materials and subcontracts and other costs and obligations incurred at the commencement of the project.
For Light Fittings:
Monthly progress claims based on the following milestones:
20% on placement of order
50% on delivery
25% on completion of fit out
5% on completion of works testing
For General Works:
Monthly progress claims based on the following milestones:
20% on placement of order
40% on completion of the rough-in
40% on completion of works and before certification is issued
For Testing, Maintenance and High Energy Service:
Monthly progress claims up to 95% of the value of work completed, the remaining 5% on presentation of the test reports. Our terms are strictly 14days from the date of claim or invoice.

Price Basis

The price is quoted on the condition that supplier items and major material items can be ordered, and stored either on site or off site with storage certificates issued and payment made for materials held in storage.


In the event that at any time during the term of the contract any new or additional taxation is imposed which effects the cost of materials, services or labour associated with the works, or which may apply to the total invoiced costs, such increases shall be added to the contract sum.

Rise and Fall

Unless specifically stated in our quotation, the quotation is based on the cost of labour and materials at the date of the quotation and is subject to price variation in accordance with the National Electrical Contractors Association (State Chapter) Standard Price variation Formula.

Copper Variation

Due to the volatile price of copper and the international market, our price associated with copper based products will be reviewed and fixed at the time of entering into any agreements should our tender offer prove of interest.

Site Productivity Allowance

No allowances are made in MLM Electric quotations unless stipulated by MLM Electric in writing, for the payment of any special or Site Allowances. If these are applicable on any sites that we are engaged on, we would require reimbursement of direct costs plus statutory, overhead and administration costs of 20%.

Site Amenities and Ablutions

We have assumed that all site amenities and ablutions will be provided by others free of charge to our company.

Special Payments

Unless specifically stated in our quotation, no provision has been made for the payment of any special site agreement, award or disability allowances.

Site Inductions

Unless specifically stated in our quotation, no allowance had been made for any site inductions. These, where required, will be charged to the customer.

Currency Exchange Rates

Where imported equipment is involved, the above price is based on the exchange rate at the time of tendering. Should the actual exchange rate vary from the Base Exchange rate, then the component of imported goods included in the tender price quoted would be adjusted accordingly.

Liquidated Damages

Unless specifically stated in our quotation, we will not accept liquidated damages. Where acceptance of liquidated damages is specifically stated, these shall in any case be limited to a maximum of 1% of our net contract amount per week to an overall maximum of 5% of our nett contract amount and shall only then be applied where the cause for such damages is directly applicable to actions on our part.

Confidentiality of Documents & Proprietary Information

Drawings, specifications and other information supplied by us as part of our tender shall be regarded as confidential, shall be used only for Technical Information, consisting of drawings, specifications, calculations and design shall remain our property and must not be copied or disclosed to any third party unless authorised by us.
Consequential Loss Liability Limitation
Unless specifically stated otherwise in our quotation our liability for loss of production, loss of income, the opportunity to earn profits, the financial consequences of business interruption and indirect and consequential loss shall be limited to $1.00.

Title Risk Of Loss

Title of goods, services and works undertaken by MLM Electric should not pass until full payment for the goods, services and work undertaken has been made by the purchaser and hereby authorises and acknowledges that entry will be given to the premises where the goods have been delivered, the services have been performed of the work has been undertaken for us to regain possession of the goods, for which full payment has not been made.

Hazardous Materials

Unless specifically stated in our quotation, the quoted price is based on the assumption that the work for which the quotation is submitted will be executed in a hazardous material free environment. It is a strict condition of our quotation that the customer accepts full responsibility for the resolution of any problems and for delays and additional costs which may result from the presence of these materials in or about the site on which the works (or any part thereof) are to be performed.

Work Site Access

We have based our offer on free and unrestricted access to all required work areas.

Live Work Clause

Our live work procedure is designed to eliminate risk of injury to our employees, damage to your installations and unexpected power disconnections.
Compliance with AS/NZA 4836:2001 “Safe working on Low Voltage Electrical Installations, relevant Commonwealth and State Statutory Acts and Work Place Regulations”.
The above may require us to disconnect or isolate parts of the installation to undertake such work for which additional charges may be applicable.

Cancellation Fees

If work is not able to proceed as arranged and if no alternative activities can be undertaken at site, a cancellation fee of 20% of the contract will be charged if the work is confirmed with an agreed start date set and is then cancelled or re-scheduled, based on man hours and materials committed to the work at the time of cancellation where these are not able to be otherwise deployed.

Service/Delivery By Instalments

Where it is practical, we reserve the right to deliver the goods, service and/or carry out the installation by instalments. In such instances progress payments and billings for each instalment shall be due in accordance with the clause “Payments” above.


Our quotations have been based on the understanding that the contract will be carried out as one continuous project, devoid if delay and with the provision of equipment and services by others as and when needed. Hold over time, waiting time, industrial disputes, inclement weather or any other time spent because of delays/prolongation caused by others will be charged at the applicable NECA standard or agreed contract hourly rates. MLM Electric also reserves the right to claim for additional costs where the client requests acceleration of the works to meet revised programming.

Site Conditions

Our quotation is valid only if the site equipment/plant is in the same condition as stated when the quotation was prepared. Any additional costs incurred due to changes or further damaging of equipment by others will be deemed to be a variation to the contract.


Delivery periods quoted are subject to change and as such should be treated as estimates only. We will endeavour to meet delivery dates but do not accept any liability for failure to complete the contract within a specified delivery period unless specifically stated otherwise in our quotation.

Australian Standard AS2987

For any matters not specifically addressed in your enquiry or our quotation, our offer is based on AS2987 “General conditions of contract for the supply of equipment with or without installation”


We warrant our workmanship for life. Our warranty is limited to making good or replacement of those parts of our supply, if found to be incorrectly connected or fitted.
Where parts or goods are defective which have been supplied to us by others, these are subject to that manufacturer or suppliers warranty.


In the event of conflict between these conditions and those which may be included in, or implied by any document forming part of an enquiry, specification, quotation, order or contract, than these conditions prevail except in as far as they are expressly varied by us in writing or by law.

Information and Drawings

All descriptive specifications, illustrations, drawings, dimensions etc, furnished by us are approximate only and are intended to be by way of general description of the goods or service and do not necessarily form part of the contract unless specifically identified as such by us in writing.


MLM Electric maintains adequate insurance that protects their property, in addition to the interests of Third Parties resulting from the negligence of MLM Electric. The existing insurance program in force for MLM Electric will not accept cross liability, waiver of subrogation, agreement for hold harmless, insurer approval, indemnities arising from any cause, rectification, frustration, consequential losses, nothing of Joint/Co-insured’s or permit agreement for insurers to notify insured parties direct. It will be purely at MLM Electrics, discretion whether it assumes the responsibility based on commercial/business practice.


The customer/client agrees not to solicit or entice away from MLM Electric (or attempt to do so) any employee, consultant or customer of MLM Electric or engage any of MLM Electrics employees in any other capacity without prior notice and permission of MLM Electric.

Electrical Safety

Please note that if during the course of installation when works are being conducted within and around switchboards that if the switchboard is found defective or deemed to be unsafe by the Licensed electrician you will immediately be notified. The power if isolated will not be re-energised until such time as the existing condition has been rectified and made safe in accordance to state regulations. All costs associated with the rectification works including materials and labour shall be to the customers account. All works shall be notified to the chief electrical inspector as required.

Contract Conditions

We advise that prior to acceptance of an order for works, the conditions of contract will be mutually agreed with our company.