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Policies and Procedures

Policy 1242 – Delayed Receiving/Payment for Special Acceptance Consideration

Effective
July 1, 1996
Last Updated
October 3, 2014
Last Reviewed
October 3, 2014
Responsible University Officer
Director of Purchasing Services
Responsible Unit
Purchasing Services

Policy Statement

It is occasionally in the best interest of the University and the State to delay payment of outstanding invoices. These situations typically involve large dollar amount procurement where final receiving and approval for payment (i.e. "contractual acceptance") is contingent upon satisfactory delivery and installation by the vendor.

Final approval and acceptance of these orders will be authorized by the requesting department using criteria that have been predetermined and agreed to by the vendor, the end user and Purchasing Services.

Reason for Policy

The reason for this policy is to provide flexibility of mitigating risk associated with key procurements that require satisfactory delivery and installation by the vendor.

Exclusions

This procedure should not be used for any of the following:

  • Term contract items
  • Standing or maintenance orders
  • Catalog, stock or off-the-shelf items
  • Any purchase less than $5,000

Special Situations

None.

Procedures

None.

Additional Information

Frequently Asked Questions

Q: We have ordered equipment for a new building but the building is not ready. Can we pay the vendor while they hold the items in storage?
A: No, items must be received by the University before payment can be made.

Q: What happens if I am not satisfied with the vendor's installation work or they are not able to meet the performance criteria? May I reduce the payment to them?
A: Yes; however, it would depend on the contract or arrangements you have previously agreed to determine if you can deduct payment for poor performance.

Related Data

Refer to G.S. 143-48

Contacts

SUBJECT CONTACT TELEPHONE FAX E-MAIL
Purchasing Services Purchasing Services - Goods 919-962-3774 919-962-0636 Purchasing_team@unc.edu

 

History

Revised:
October 1, 2014: Removed withhold payment and progress payment information.
November 18, 2003