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Service Warranty and On-Time Completion Guarantee

1. FINNING’S RESPONSIBILITY FOR SERVICE WARRANTY

Finning warrants the work performed on equipment by its personnel to be free from defects for 365 days or 4,000 hours of operation, whichever occurs first. Finning will administer the warranty offered by the manufacturer (in addition to this Finning Service Warranty) with respect  to  parts  repaired  by  Finning  ("Repaired  Parts"),  new  and  re-used  parts, remanufactured  parts,  components,  exchange  components  and  workmanship  under normal use and service for 365 days or 4,000 hours of operation, whichever occurs first. This coverage begins from the date of completion of the initial work on the equipment. The following exceptions to the foregoing coverage apply:

  • On highway vehicles inclusive of engines and/or transmissions powering on-highway vehicles are covered for 365 days, 100,000 kilometers or 4,000 hours of operation.
  • Commercial or industrial gas/diesel engine applications, industrial transmissions, marine, petroleum and electric power generating equipment are covered for 365 days or 4,000 hours of operation.
  • Commercial gas engines powering gas compression equipment are covered for 365 days or 8,000 hours of operation

Subject to the provisions of this Service Warranty, Finning will repair or replace, as it may elect, Repaired Parts, re-used parts, new parts, remanufactured parts, components, exchange components. Finning will redo workmanship where, upon inspection by Finning, the part(s) or workmanship, as the case may be, is determined by Finning in its discretion to be defective. Repairs will be performed to return the equipment to its pre-failure state (less normal wear and tear). In the case of an exchange component failure, the terms and conditions of Finning’s Exchange Component Warranty shall apply. Such repair, replacement or redo includes servicemen's travelling expenses (such as meals and accommodation), travel time or transportation charges up to a maximum of $1000.00. Amounts in excess of $1000.00 for traveling expenses, travel time or transportation charges must be paid by the customer. Such repair also includes labour, replacement parts (where parts are covered by the manufacturer’s warranty), and tools. Where required, as a result of a warrantable failure, parts and labour required for maintenance service such as engine tune-up, supplies and consumables such as oil, grease, fuel or filters are also covered.

2. ON TIME JOB COMPLETION GUARANTEE

Finning will agree to and supply a guaranteed completion date acceptable to Finning and the customer. If work is not completed by that date, Finning will pay by cheque or issue a credit to the customer’s account, as determined by Finning, a sum equal to:

Cost of Repair                  Amount Payable by Finning

$0 - $20K                         4% of the cost of the repair per day late

$20001K - $50K               3% of the cost of the repair per day late

$50001K - $100K             2% of the cost of the repair per day late

$100001K +                      $2000 per day late

It is provided however that under no circumstances will the amount payable by Finning under this On-Time Job Completion Guarantee exceed 20% of the repair cost. Under this On-Time Job Completion Guarantee, the first day that Finning is deemed to be late commences at 12:01 A.M. on the day following the day that Finning agreed to complete its work. Finning reserves the right to offset any amount payable by Finning under this Service Warranty against amounts owed or owing to Finning or any of its affiliates or subsidiaries by the customer pursuant to any contract or other legal relationship between the customer and Finning.

3. LIMIT OF FINNING'S RESPONSIBILITY WITH RESPECT TO SERVICE WARRANTY

(a)   Warranty work will be completed by Finning during the regular working hours of Finning's service department. Warranty work may be completed outside regular working hours at the customer's request but the customer will pay the difference between Finning's overtime labour billing rates and its regular straight time labour billing rates notwithstanding any other provision hereof.

(b)   Warranty work will be carried out at a time and location determined by Finning.

(c)   It is a condition of this warranty that the customer properly maintain and operate the equipment to which this warranty applies and comply with all service requirements and recommendations  of Finning or the manufacturer of the equipment (and intended uses prescribed by the manufacturer or Finning) including Finning scheduled oil sample service (SOS). The customer must notify Finning immediately of a warrantable failure or defect or that a suspected warrantable failure or defect exists, has occurred or is about to occur. Labour or parts furnished to perform repairs required as a result of improper or careless operating practices, failure to give timely notice of a failure or defect, lack of adequate operating maintenance (including daily maintenance), willful or accidental damage or normal wear and tear are not covered by this warranty and will be paid for by the customer at Finning's applicable labour billing rates and parts prices.

(d)   Warranty claims will not be allowed unless Finning is notified at the time of failure and before the expiration of the service or parts warranty.

(e)   The liability of Finning under this Service Warranty is limited to the repair or replacement of replaced parts (new, remanufactured or exchange), Repaired Parts, re-used parts and workmanship and to the provision of any amounts that may be specifically payable hereunder pursuant to section 2 hereof. Finning, its employees, agents and contractors shall not under any circumstances be liable for personal injuries (including death) to any person (including the customer) or for any loss or damage to property or business either direct, indirect or consequential whether to parts, components or the equipment or to any other property, caused or contributed to by a warrantable failure or defect, by any work performed by Finning, by the delivery, operation or possession of parts, components or the equipment by Finning or any other person, by defects in repaired parts, re-used parts or workmanship or comparable equipment provided hereunder, by any default or negligence of Finning, its employees, agents or contractors or by any other cause or reason whatsoever. In addition, in no case shall Finning be liable for loss of profits, special, consequential or indirect damages, loss of income or use of parts, components or the equipment or comparable equipment provided hereunder whether or not caused or contributed to by the negligence or default of Finning.

4. NO OTHER WARRANTIES

This Service Warranty is in lieu of all other warranties, either express, statutory or implied, arising from law or equity or any other source, including but not limited to any warranty of merchantability or fitness for a particular purpose.

5. TRANSFERABILITY

This Service Warranty is exclusive to the owner of the parts, components or the equipment at the time the work is performed and is not transferable to subsequent purchasers without the express written consent of Finning.

6. GEOGRAPHIC RESTRICTIONS

This Service Warranty applies only to parts, components and equipment repaired by Finning and located in Finning’s Canadian dealership territory.