What is the Meaning of This Statement?

Question

Hi AllI sometime back was invited to do a transportation job and signes a contract which in part read:"The price of each unit of service shall be that shown on the approved Commercial offer, i.e Kshs 25 per metric ton,per Km including all taxes and allowances. The entire contract shall be determined by the exact total tonnages and kms covered"The issue here is, a unit of service is carrying one ton for 1km distance = shs 25/= pay.I made deliveries to 20 different stations totaling to 900Km carrying varying tonnages but all totaled to 140 tons. The organisation which contracted me want to pay per trip while to my understanding the total should be added together and multiplied by 25/=Kindly advice the correct meaning before i persue other options&gt;B RegardsS Okumu

Avangi · Accepted Answer

Biko OkumuThe price of each unit of service shall be that shown on the approved Commercial offer, i.e Kshs 25 per metric ton,per Km including all taxes and allowances. The entire contract shall be determined by the exact total tonnages and kms covered

The terms are not very well written.
If the calculation is to be made solely on the total tonnage, "tonnage" should be singular.

But on the other hand, there's no way to evaluate "the exact total tonnages and kms" other than to add them up.

If their intention is to use some kind of "per trip" formula, it's clearly NOT expressed here.

Are they proposing a flat "per trip" rate?

I completely agree with you. It should be total weight times total distance times rate.

Edit. Well, I'm having second thoughts.

Of course the calculations would come out differently if you considered each trip individually.

Again, the plural "tonnages" suggests that each trip has a different weight component.

And the expression, "each unit of service" could be taken to suggest that the calculations are to be performed on a "per trip" basis, and those results totalled.

trip #1 wt. 2 X distance 400 X 25 = 20,000

trip #2 wt. 6 X distance 100 X 25 = 15,000 (per trip total is 35,000)

total wt. 8 X total distance 500 X 25 = 100,000 (huge difference)

Common sense suggests that calculating the trips separately is the fair and equitable way to do this.

By choosing different values, the results may be made to favor either you or them.

Biko Okumu · Answer

Hi

Thank you very much for your deep insight into the wordings of this contract>

B Regards

S Okumu

Biko Okumu · Answer

EDIT.

In the same contract there is a clause " Payment requests shall reach the contracting authority at RAA Nairobu not later then three working days after each delivery phase"

There were supposed to be six different delivery phases. To me; a phase consitituted a unit of service; thats why we were to invoice after each phase.

Also a unit of service is not a trip made but a standard way of pricing the cost of moving 1 TON for 1 KM.

Thank you

Avangi · Answer

Hi, Biko,

Thanks for the clarification.

As in most fields of endeavor, "technical" terms acquire special meanings within different communities.

So in this case, "the total contract" ("the entire contract") comprises a certain number of separate deliveries, six.

Clearly, "one delivery phase" amounts to transporting one specified load, or group of goods, from one location to another. It may or may not include loading and unloading, or portal to portal charges. It seems like it does not.

Anyway, six separate requests for payment must reach the home office within three working days of the completion of each of the six deliveries.

In this case it would be impossible to calculate these separate charges based on the totals for the six deliveries.

If "one unit of service" is defined as "one ton times one Km," then it is obviously not "one trip."

(This is a common usage of the word "unit.")

Dimsumexpress · Answer

Biko Okumu The organisation which contracted me want to pay per trip while to my understanding the total should be added together and multiplied by 25/=

I think you should be. $25 is the unit base pay for carrying a metric ton / Kilo Mile. If that's shown on the contract, stand your ground and demand payment as stated in the contract. Iwould say someone is trying to skim off you. The question is, you should figure out the total tonage which you described as "varying" ahead of time The 20 trips shouldn't be in the equation because that's covered as part of the 900 miles which is the multiplying factor. If the load is fixed from point A to point B, like a trailer filled with frozen chicken, then it's much easier to make you case.

That's my opinion.

Biko Okumu · Answer

Hi Dimsumexpress, All members,

I really appreciate the simple angle you have put the unit base pay for carrying out a metric ton/ Kilo mile. I am more resolved to demand my payment as per executed contract document. I have a meeting next week to present my explanation; failure to them obeying the contract, i will hav eto involve my attorney.

Best Regards

S Okumu

Dimsumexpress · Answer

I understand your predicament. That's why I laid out the scenario so that you have the calculated payment according to the contract when you consult with an attorney. I wish you luck!

Avangi · Answer

He says the contract provides that he must submit the request for payment for each of the individual SIX deliveries within three working days of the completion of each delivery.

What makes you think the tonnage and KM's are available for the future deliveries?

And even if they were, how would the factors for trips 2,3,4,5,& 6 affect the price of trip one?

The two different interpretations would be possible only if he were allowed to wait until ALL trips are completed to submit his bill.

Perhaps you haven't read the contract.

Rgdz, - A.

What is the Meaning of This Statement?

Top answer

Get the Weekly English Kit 📬

Related Questions