These terms apply to all purchases by HS Orka hf. and its suppliers unless otherwise specifically agreed. All suppliers that HS Orka does business with must be in compliance with public charges, pension fund contributions, and other statutory fees.
Suppliers may be required to provide confirmation of this compliance once a year. If suppliers do not meet these requirements, they will not be approved suppliers for HS Orka. HS Orka only conducts business with approved suppliers.
1. General Purchasing and Purchase Orders
All purchases by HS Orka hf. must be based on a purchase order or a contract that has been made. Without a specific purchase order or contract, suppliers cannot be certain that HS Orka has authorized the purchase. Suppliers who deliver goods without a purchase order or reference to it can expect the goods to be returned in the condition resulting from their use, and payment will be refused. A purchase order is valid only for the quantity and items specified and does not constitute a contract beyond that unless otherwise specifically stated. Information on Purchase Orders
A purchase order for goods must specify:
- Type of goods
- Number of units
- Unit price
- Total order price and shipping cost where applicable
- Delivery time and delivery location
If the information on goods, prices, discounts, or other details on the purchase orders is incorrect, contact HS Orka hf.'s finance department, which will either correct or cancel the purchase order.
Each purchase order has a specific 7-digit number (HSXXXXX) referred to in these terms as the order number.
2. Delivery Location and Terms
Goods must be delivered to the location specified in the purchase order. If a carrier is specified in the purchase order, the supplier, unless otherwise stated, must deliver the goods to the nearest shipping station of that carrier. HS Orka hf. does not pay for transportation to the shipping station, packaging costs, invoice fees, or handling fees. If goods are not delivered to the specified location, HS Orka hf. reserves the right to charge the supplier for any additional costs incurred and deduct them from the payment for the goods.
3. Delivery Time
The delivery time specified on the purchase orders is based on the delivery location stated. If the delivery time is not specified on the purchase order, the supplier must inform about the delivery time in the order confirmation.
4. Packaging and Labeling
The supplier must package and pack goods in such a way that they are not damaged or deteriorated during transportation to the destination. All packages must be labeled with HS Orka hf. and the order number, and a copy of the invoice and/or packing list showing the price and contents must accompany the goods. If hazardous goods are involved, they must be in appropriate packaging and labeled in accordance with applicable regulations. Suppliers must provide safety data sheets in Icelandic.
5. Payment Terms
HS Orka hf. pays invoices in accordance with the payment terms stated on the purchase order or as otherwise agreed. The currency of invoices must be Icelandic krónur unless otherwise agreed. Invoices in Icelandic krónur must not include cents. The order number must appear on all invoices. A separate invoice must be issued for each order. Information about the bank and account number of the payment recipient must be included on the invoices. If there are any changes to the supplier’s information, such as ID number, bank account, etc., please contact HS Orka hf.'s finance department at bokhald@hsorka.is. HS Orka only accepts electronic invoices. Invoices can be sent via Advania’s message exchange or to sendareikning.hsorka.is. If an invoice is sold to a third party, such as a collection agency, so that the invoice is not paid to the sender, the creditor must specifically notify bokhald@hsorka.is. Lack of the aforementioned information may result in payment delays, and HS Orka will not bear any costs due to such delays.
6. General Information about Invoices
Paper invoices should be sent to: HS Orka hf., Svartsengi, 240 Grindavík. Invoices received in electronic form (scanned) should be sent to bokhald@hsorka.is. Electronic invoices should be sent via Advania’s message exchange.
7. Return Policy
HS Orka reserves the right to return goods to the supplier within 30 days of delivery, provided that the goods are unused and in their original packaging. This does not apply to goods that have been specially ordered according to HS Orka hf.'s specifications unless the goods do not meet the requirements and specifications provided by the supplier before the order was placed.
8. Insurance
HS Orka hf. has comprehensive insurance for goods in transit from the delivery location. HS Orka does not pay the supplier separately for insurance on goods transported to the delivery location.
9. Order Confirmations
Orders must be confirmed in writing by email to innkaup@hsorka.is within one business day from the order date.
10. Partial Deliveries
Partial delivery of ordered goods is not permitted without the approval of HS Orka hf.'s finance department. In cases where partial delivery occurs without HS Orka hf.'s approval, the delivery is considered the final delivery of the order and is considered a breach of the order.
11. Service Invoices
All invoices for construction or maintenance projects received by HS Orka hf. must reference the order and work order number or contract number. A separate invoice must be issued for each project. An invoice will not be approved unless the specified supporting documents accompany it, such as an approved timesheet, material report, or other documents related to the invoice payment as per the contract. Invoices must clearly and distinctly show the base amount for labor or materials and the VAT portion in Icelandic krónur. The invoice must also itemize the total cost of labor, materials, and the total number of hours worked. A sales invoice must be issued in the month the work is performed.
12. Breach of Contract
The supplier must notify HS Orka of any foreseeable breaches of their obligations under the purchase order and these terms. If the supplier significantly breaches their obligations under the purchase orders, HS Orka hf. is entitled to terminate the purchase order.
13. Force Majeure
Neither party shall be liable to the other for failure to fulfill obligations under the purchase orders and these terms if the reasons for the failure are due to force majeure. Force majeure can only be declared if the circumstances preventing the fulfillment of the purchase are not due to the party declaring force majeure and have occurred after the purchase order was made or confirmed. Force majeure includes, but is not limited to, acts of war, occupation, revolutions, uprisings, riots, disturbances, sabotage, fires, transportation bans, etc.
14. Assignment
Purchase orders from HS Orka hf. may not be assigned to a third party in whole or in part without the written consent of HS Orka hf.'s finance department.
15. Price Changes
All price changes must be notified with at least one month’s notice to HS Orka hf.'s finance department.
16. Safety Requirements
HS Orka hf. requires that supplier employees entering HS Orka hf.'s work sites meet all equipment requirements such as safety clothing, helmets, glasses, etc. All suppliers must regularly familiarize themselves with the company’s “Environmental, Safety, and Health Policy,” which can be found on HS Orka’s website, hsorka.is.
17. Employment Terms
The supplier must comply with the laws and regulations governing labor relations. The supplier must ensure and be responsible for that all employees, whether they are employees of the supplier, subcontractors, or staffing agencies, receive wages and employment terms in accordance with applicable collective agreements and laws of the relevant occupational group. This applies regardless of the length of the employee’s employment. Employment terms include, among other things, health and accident insurance and other agreed rights as stipulated in the collective agreement.
The supplier must be able to demonstrate that all rights and obligations according to the above are fulfilled. The supplier must provide documents that HS Orka hf. deems sufficient to demonstrate that the above rights and obligations are fulfilled within 10 calendar days from the date of request. Statements from relevant parties, such as confirmations from the relevant trade union of the employees, can be considered sufficient proof. If documents are not provided within this time or the supplier cannot demonstrate that the above rights or obligations are fulfilled, HS Orka hf. is entitled to remove the supplier as an approved supplier of HS Orka hf. HS Orka hf. is entitled to withhold payments due to unpaid wages and reserves the right to allocate payments to the affected employee in consultation with the relevant trade union as applicable.
18. Jurisdiction
Disputes that may arise due to these purchasing terms shall be brought before the District Court of Reykjanes. These terms are effective from April 20, 2020, for all purchases of goods and services in Iceland for HS Orka hf. The latest version of this document can always be found at http://www.hsorka.is.