Performance guarantees

Performance guarantees for grinding and separation processes in theory­ and practice

Summary: Performance guarantees are usually agreed for both new plants and the conversion of existing plants and equipment. Unfortunately, these are increasingly becoming a plaything in business, on the part of the suppliers to secure orders on the strength of such guarantees and on the part of the customers hoping to keep the liability escrow on conclusion of a project. Sometimes demands are made for multiple performance guarantees, which are then mutually exclusive. This paper – according to a lecture presented at the Mineral Processing Seminar 2014 at Montan University of Leoben/Austria, from 30.–31.01.2014 – is intended to explain some relationships common in grinding and separation, on the basis of which performance guarantees can be specified.

1 Basic considerations

Warranty agreements are regulated on the basis of statutory provisions, in Austria, for example, the Austrian Civil Code (ABGB). The legislator stipulates that a party who delivers goods or services to another party in return for payment guarantees that these correspond to those specified in the contract. The former party is therefore liable that the goods or services exhibit the stipulated or usually assumed properties, that they correspond to a description, or sample or model and they can be used according to the nature of the business transaction or any arrangements...

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