Purchase Order

General terms and conditions

Acknowledgement and Acceptance

Acceptance of this purchase order (“Purchase Order”) by you (“Seller”) from McKinsey & Company, Inc. United Kingdom and its affiliates (“McKinsey”) constitutes acceptance of all of the terms and conditions stated herein. With respect to McKinsey, the term “affiliates” means any entities that directly or indirectly control, are controlled by, or are under the same control as, such party or any other entities affiliated with such party or entities. Seller agrees to provide, manufacture, assemble, procure, test, and/or sell to McKinsey, and McKinsey agrees to purchase from Seller, the products and/or services (“Products”) in the manner specified in this Purchase Order. To the extent that any project description, document, quotation, order acceptance, confirmation, invoice, or other document of Seller attached hereto contains conflicting, differing, or additional terms from the terms and conditions of this Purchase Order, the terms and conditions of this Purchase Order control and all such conflicting, differing, or additional terms are rejected by McKinsey and shall have no effect. Seller’s signed acknowledgement of the Purchase Order, or Seller’s delivery of Products (as defined herein), or acceptance of payment for Products, shall conclusively affirm Seller’s acceptance of these terms and conditions. McKinsey and Seller agree that all purchases by McKinsey’s affiliates from Seller shall be subject to the terms of this Purchase Order, unless expressly and specifically amended in a subsequent writing signed by both parties.

Delivery, Inspection, and Acceptance. Seller’s shipments shall conform to the quantities and delivery schedules on this Purchase Order. All deliveries of Products to McKinsey shall be subject to incoming inspection and testing by McKinsey. McKinsey may refuse acceptance of any Products which in McKinsey’s judgment are defective, nonconforming, or in excess of ordered quantities or delivered outside of the on-time window. If delivered Products are nonconforming, Seller shall both ship conforming Products on an expedited basis at Seller’s expense or offer and deliver a substitute Product which is acceptable to McKinsey in its sole discretion. In addition to McKinsey’s other rights, McKinsey may charge Seller all expenses of unpacking, examining, repacking, and reshipping such Products. If Seller fails to provide conforming Products, Seller will pay all direct costs incurred by McKinsey to obtain substitute Products from alternative sources. In the event McKinsey receives Products whose defects or nonconformities are not apparent on initial examination, McKinsey reserves the right to require replacement of the Products, as well as payment of damages. Nothing contained in this Purchase Order shall relieve Seller in any way from the obligation of conducting its own testing, inspection, and quality control. McKinsey shall have access to Seller’s facility during reasonable business hours to preinspect any Products. Payment for any Products shall not be deemed an acceptance thereof. Nothing contained in this paragraph shall limit McKinsey’s rights under Seller’s warranties for the Products. Unless otherwise agreed, delivery shall be Free On Board (F.O.B.) point of destination and title shall pass to McKinsey upon acceptance at the final delivery point.

Title and Risk of Loss. Seller shall bear the expense of transporting the Products to McKinsey, including insurance. Seller assumes all risk of loss of or damage to all Products ordered and all work in progress, materials, and other items related to the Purchase Order until the same are finally accepted by McKinsey. Seller assumes all risk of loss of or damage relating to any Products, work in progress, materials, and other items rejected by McKinsey until the same are received by Seller or accepted by McKinsey.

Rescheduling/Cancellation. McKinsey may reschedule the delivery dates and quantities for this Purchase Order without incurring any additional charges, provided that McKinsey notifies Seller in writing at least ten (10) days before the delivery date. McKinsey may delay delivery or acceptance occasioned by causes beyond its control. Seller shall hold such goods at the direction of the McKinsey and shall deliver them when the cause affecting the delay has been removed. Causes beyond McKinsey’s control shall include, but not be limited to, any act of God, government action or failure of the government to act where such action is required, strike or other labor trouble, any epidemic, war or public enemy, any act of sabotage or terrorism, fire, flood, explosion, unusually severe weather, or other catastrophe.

McKinsey may cancel this Purchase Order, for its convenience, with or without cause, on thirty (30) days advanced written notice to Seller. All deposits and/or prepaid fees received from McKinsey shall be returned to McKinsey within such thirty (30) day period. Seller may not cancel this Purchase Order.

Packing. Seller shall package, pack, mark, and ship the Products for delivery in accordance with McKinsey’s instructions and otherwise in a manner designed to withstand transportation without damage. A complete packing list, including the McKinsey order number, the type of Product, the McKinsey part number, the quantity shipped, the remaining quantity to be shipped under the referenced order, and the revision level, shall be enclosed with each shipment. If Seller requires McKinsey to return any packaging materials to Seller, that fact must be clearly stated on the delivery note accompanying this Purchase Order, and any such returns shall be at Seller’s expense.

Changes to Standards and Specifications. From time to time, McKinsey may replace or change Product standards and specifications, with such replacement or change to be effective no less than ten (10) business days after McKinsey’s advance notice to Seller. McKinsey and Seller shall negotiate in good faith and revise the purchase price of the Products upward or downward as appropriate for such modification or change, and adjust the delivery schedule and Seller’s stocked inventory, as a result of any changes to the standards and specifications by McKinsey.

Purchase Price. The Purchase Price for each of the Products shall be inclusive of all transportation costs. Seller warrants that the prices charged for the Products are the lowest prices charged by Seller to its customers purchasing any of the Products in the same or smaller quantities. The price stated in this Purchase Order includes all charges for packaging, boxing, crating, special handling, and freight, F.O.B. destination. No modification or adjustment of the stated price may be made without the signed written agreement of McKinsey. If the price is not stated on this Purchase Order, the price shall be the lower of the price last quoted or paid, or the prevailing market price.

Taxes. The amount of any sales, use, excise, or other similar tax applicable to the Products not measured by income of Seller shall be paid by McKinsey or, in lieu thereof, McKinsey shall deliver to Seller a tax exemption certificate acceptable to the taxing authority. Any taxes to be paid by McKinsey shall be separately stated on Seller’s invoice.

Invoicing and Payment. Seller shall invoice McKinsey for each shipment of Products on or after the date that Seller delivers the shipment to McKinsey. Each invoice shall contain McKinsey’s order number, McKinsey’s part number, a description of the Products delivered, the revision level of the Products, quantities, and unit prices. The total Purchase Price for each shipment shall be due and payable within sixty (60) days after McKinsey receives Seller’s invoice with respect to that shipment. Where appropriate, a Purchase Card (P-card) may be used as a form of payment.

Warranty. Seller expressly warrants that all Products furnished under this Purchase Order shall conform to all specifications and appropriate standards, will be new, and will be free from defects in material or workmanship. Seller warrants that all the Products will conform to any statements made on the containers or labels or advertisements for such Products, and that any goods will be adequately contained, packaged, marked, and labeled. Seller warrants that all Products furnished hereunder will be merchantable and will be safe and appropriate for the purpose for which goods or services of that kind are normally used. If Seller knows or has reason to know the particular purpose for which McKinsey intends to use the Products, Seller warrants that such Products will be fit for such particular purpose. Seller warrants that Products furnished will conform in all respects to samples. Inspection, test, acceptance, or use of the Products furnished hereunder shall not affect Seller’s obligation under this warranty, and such warranties shall survive inspection, test, acceptance, and use. Seller’s warranty shall run to McKinsey, its successors, assigns and customers, and users of products sold by McKinsey. Seller agrees to replace or correct defects of any Products not conforming to the foregoing warranties promptly, without expense to McKinsey, when notified of such nonconformity by McKinsey, provided McKinsey elects to provide Seller with the opportunity to do so. In the event of failure of Seller to correct defects in or replace nonconforming Products promptly, McKinsey, after reasonable notice to Seller, may make such corrections or replace such goods and services and charge Seller for the cost incurred by McKinsey in doing so.

Marks. McKinsey may require Seller to affix one or more of McKinsey’s trademarks or trade names (the “Marks”) to the Products. The Marks shall be applied only in accordance with McKinsey’s instructions and standards and shall require the prior written approval of McKinsey. Seller recognizes the value of the goodwill associated with the Marks and acknowledges that the Marks, and all rights therein, belong exclusively to McKinsey. This Purchase Order shall not be construed as a grant of a license or an assignment to Seller of any right, title, and/or interest in and to the Marks. The Marks are, and shall remain, the exclusive property of McKinsey and at no time shall Seller acquire any rights or interests therein.

Indemnity. If any action or proceeding is brought against McKinsey arising out of McKinsey’s purchase or use of the Products, McKinsey shall notify Seller in writing of any such action or proceeding and Seller shall, at its own expense, defend such action or proceeding and indemnify and hold McKinsey, its affiliates, directors, officers, employees, vendors, and contractors harmless from and against any and all liability, and pay all damages and costs, losses, claims, and demands (including reasonable attorney’s fees) arising out of such action or proceeding.

Confidentiality. Seller understands that as an actual or potential, direct or indirect, provider of Products to McKinsey and those in common control therewith, Seller may learn a great deal about McKinsey, its work, and its operations, and about McKinsey’s clients, their work, and their operations (collectively “Confidential Information”), that this information is very valuable, and that McKinsey and its clients would suffer great harm if such Confidential Information fell into the wrong hands or was otherwise disclosed to third parties. For that reason, Seller understands that this Confidential Information must only be disclosed to those of its employees with a need to know in order to provide the Products hereunder. In addition, Seller agrees to protect the Confidential Information in a manner consistent with the treatment that it accords its own Confidential Information of a similar nature and in no event with less than reasonable care.

Compliance with Applicable Laws. Seller has been, and shall continue to be, in material compliance with the provisions of all applicable laws, rules, regulations, and other governmental requirements applicable to the transactions governed by this Purchase Order.

Governing Law. This Purchase Order and any dispute or claim arising out of or in connection with it or its subject matter or formation will be interpreted in accordance with the law of England and Wales without regard to any provisions of its choice of law rules that would result in a different outcome.

Miscellaneous. In the event that one or more of the provisions contained in this Purchase Order shall for any reason be held to be invalid, illegal, or unenforceable, the same shall not invalidate or otherwise affect any other provision of this Purchase Order, unless that shall unfairly burden or benefit one party. The terms of this Purchase Order may not be altered or modified subsequent to the issuance hereof except pursuant to a written agreement signed by both parties. This Purchase Order shall not be assignable by either party, except that McKinsey may assign this Purchase Order to any subsidiary or affiliate thereof or successor-in-interest by way of merger, acquisition, or the like. No failure or delay on the part of either party hereto in exercising any right or remedy under this Purchase Order shall operate as a waiver thereof. No provision of this Purchase Order may be waived except in writing signed by the party granting such waiver.

Insurance. Seller shall maintain in effect, at its expense, insurance of such types and in such amounts as is commercially reasonable in connection with the conduct of its business, including, without limitation, insurance coverage for its liability and indemnity obligations hereunder. Seller will secure and maintain insurance providing coverage for liabilities to third parties for bodily injury (personal injury) and damage to property in amounts sufficient to protect McKinsey in the event of such injury or damage, and will be in compliance with any and all laws, regulations, or orders addressing the liabilities of an employer to its employees for injuries and disease suffered in connection with employment. Seller further will maintain such additional types and limits of insurance as is customary for a company of similar size and similar operations to Seller in the jurisdiction or jurisdictions in which Seller’s operations take place.

Publicity. Seller agrees not to refer to McKinsey as a client or customer, or otherwise use or reveal McKinsey’s name or this relationship, for any marketing or other commercial purpose, except as expressly required by law. Substitution/Modification. No substitution or modification of any Products, component parts, tooling, and sources of raw materials, processes, or manufacturing sites may be made without McKinsey’s prior written consent.

Equal Opportunity. McKinsey and Seller each represent and warrant that they do not and will not discriminate against any worker because of his or her age, color, creed, disability, national origin, race, religion, sex, sexual orientation, or veteran status, and that they are and will act and remain in compliance with all relevant laws, rules, and regulations. Seller warrants and represents that performance of the services does not and will not violate, infringe, or conflict in any manner with any duty or obligation of Seller to any other entity.

Insolvency. In the event of any proceeding, voluntary or involuntary, in insolvency by or against Seller, including any proceeding under the insolvency laws of England and Wales, or in the event of the appointment, with or without Seller’s consent, of a receiver or an assignee for the benefit of creditors, McKinsey shall be entitled to cancel any unfilled part of this Purchase Order without any liability whatsoever.

Set-off. All claims for money due or to become due from McKinsey shall be subject to deduction or set-off by McKinsey by reason of any counterclaim arising out of this or any other transaction with Seller.

Third-Party Rights. A person who is not a party to this Purchase Order shall not have any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Purchase Order. For the avoidance of doubt, affiliates of McKinsey shall be entitled to enforce the terms of this Purchase Order.