The nuances at the conclusion of contractsMarch 5, 2022 2022-03-06 10:54
The nuances at the conclusion of contracts
The nuances at the conclusion of contracts
Nuances of contract formation. After all documents for the cargo had been filled, they all should be revised once more in order to check if there are any points which are not clear. If you find some inconsistencies, you should eliminate them. You should receive the adjusted sheet with the cost of the cargo, rate confirmation and sign it, as well as the contract itself with a signature.
Price of freight or freight rate. This indicator is the amount that an investor will receive for transporting a certain cargo. The price may also include remuneration for Looper, payment for services of workers during the truck loading and unloading, compensation for downtime and empty miles deadhead, as well as a payment for additional loading and unloading.
Lumber payments. According to the law, all services for unloading a truck are paid by the sender, so he has to pay compensation to the owner operator. Currently, the use of lumping services for unloading a full trailer is approximately from $50 to $500. In this case, the contract should include the points by which all expenses for truck unloading should be reimbursed to the owner.
In this case, the payment method must be also be indicated in the contract including the reimbursement after credit [0:01:33 unclear] received is submitted, or these price should be initially added to the invoice. Payment for truck delay. In contrast to refund for loading downtime cost, the load does not prescribe a certain amount of compensation for the downtime.
Regulators believe that partners will figure out themselves that what compensation should be for the downtime. The owner operator receive compensation because he has to wait with the truck loading in the dock. For this reason, today most brokerage companies pay for the delay time for loading or unloading, usually only if the truck is idle for three or five hours or more. So, the cost of delay is usually about from 250 or per 24 hours.
The contract prescribes information about the amount of the fine for downtime. So it’s better to examine the contract carefully. Financial regulation in contracts with the remote brokerage firms, the use of several different payment options is relevant. QuickPay is just one of them. This method assumes that the payment will be made within 24 hours or no later than a week after an owner operator provides bol, invoice and also confirmation sheets are signed.
If the company offers QuickPay payment method, then its charged the amount of 3% to 5% if the operation is carried within 24 hours. For example, for a cargo of $4,000, a payment of 3% will be 120. If the payment is made within a week, a fee of 1% to 2% will be charged. Almost always the availability of QuickPay is indicated in the rate confirmation sheet. And in order to provide such payment method, the owner needs just to take the corresponding point and indicate this information in the invoice.
In some cases, the companies will assume an initial QuickPay subscription upon entry into a contract. In this case, all invoices will be considered and paid under the terms of this options. The payment itself can be made upon a request by the comp check manager or with a business check which is sent to the company’s address.
Advanced payments. Today’s companies often offer compensation for spent fuel using the comp check services. Advanced payments most often depends on the amount commodity. Typically, the size of commission is within 1% to 2% of the sum in the check.
Reimbursement of expenses. Some firms compensate the cost for the work of loaders in a similar way. But there are also those who are required to show a receipt for compensation.
Factoring. Factoring firms withdraw payments for services in the range from one and a half to 5% of the invoice amount. They have to pay no later than two days after the invoice with all the attached documents are submitted. Before registering to the factoring service, you must receive the sample of the contract and study it carefully. It is necessary to carefully study the terms and conditions.
Bill of Lading. Owner will receive payment only after providing Bill of Lading as well as the invoice and rate confirmation sheets signed by the receiver of the cargo. In some organizations, there is a special fax number for these and corresponding procedures are prescribed. If this letter exists, then the owner must strictly follow them, control the timeliness of processing of the documents submitted by him since the amount of the time of the payment depends on it.