My company undergo a contract deal of IT project - CCTV, Time & Attendance system with a food processing plant which we did successfully but could not handover due to non-experience staff to confirm the efficiency of project. With no personnel to man the equipment for two years. However we wrote to the food processing plant on the status of the project and the need to employ an experienced personnel which took them about two years and in between the equipment that has not been commission was powered by the plant manager to facilitate the use of UPS and inter-com thereby leaving DVR and the CCTV equally powered. Over the time power surge causes a great damaged to some of this equipment i.e. mostly outdoor CCTV cameras which were replaced without asking for additional cost. In the process the DVR was equally affected which eventually gave up, it was taken out of the food plant for repairs with management consent, though the main component in the DVR has not been replaced for over 3 - 4 months due to non-availability. Now the food plant want to take up a legal action against the entire IT project. Kindly advise.
1 Answer from Attorneys
Dear Sir / Madam,
You should refer the terms and conditions as contained in your Sales & Service Agreement with the food processing company (buyer). Normally, efficiency and debugging of any hardware and software is carried out and done by the supplier or seller alone. I get the impression that the system was not tried and tested due to lack of skilled and trained manpower. Usually, during the initial period, trained and skilled IT personnel are provided to the client by the IT company themselves to operate the equipment for a period of one or two months till the in-house Company employee(s) or representative(s) at the buyer's company have followed all the operations and reports of the package. In my opinion, you should only defend yourself in the event the buyer pursues legal action. However, an amicable dialogue and mutual settlement by both the parties without going legal, is the ideal situation.
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