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General purchase and payment terms

These terms and conditions apply to all purchases by HS Orka hf. and the company's suppliers unless otherwise specifically agreed on. All suppliers which HS Orka hf. does trades with must pay public fees, pension fund fees and other mandatory fees.

Suppliers may be required to submit such confirmation once a year. If suppliers do not meet these requirements, they will not be approved suppliers of HS Orka hf. HS Orka hf. only conducts business with approved suppliers.

1. General about purchases and purchase orders

  • All purchases from HS Orka hf. shall be carried out on the basis of a purchase order or a contract that has been concluded.
  • Without a separate purchase order or a contract, suppliers cannot be sure that HS Orka hf. has authorized the purchase. Suppliers who deliver products without a purchase order or reference to it can expect products to be returned in the condition that may result from the use of the product and a payment refusal.

A purchase order is valid only for the quantity and products specified and has no contractual value beyond that, unless otherwise specifically stated

2. Information on purchase orders

  • A purchase order for a product must specify:
    • Product type
    • Number of units
    • Unit price
    • Total order price and shipping costs where applicable
    • Delivery time and place of delivery
  • If information about products, prices, discounts or other things stated on purchase orders is not correct, contact the finance department of HS Orka hf. which either corrects or cancels the purchase order.
  • Each purchase order has a unique 7-digit number (HSXXXXX) and is referred to in these terms as the order number.

3. Place of delivery and terms

  • Products must be delivered to the location specified in the purchase order. If a carrier is specified on the purchase order, the supplier shall, unless otherwise stated, deliver goods to the nearest transport station of that carrier. HS Orka hf. does not pay cost of transport to the transport station, packing costs, bill fees or handling fees.
  • If products are not delivered at the specified location, HS Orka hf. reserves the right to collect from suppliers all the additional costs that the company may incur as a result, and to deduct payment for product purchases.

4. Delivery time

  • The delivery time stated on purchase orders is based on the delivery location stated there. If the delivery time is not specified on the purchase orders, the supplier must inform about the delivery time in the order confirmation.

5. Packaging and labelling

  • The supplier must arrange and pack the goods in such a way that they are neither damaged nor degraded during transport to the destination.
  • All packages must be marked HS Orka hf. along with the order number. A copy of the invoice and/or a packing list stating the price and contents must also be included with the products.
  • In the case of dangerous goods, they must be properly packaged and labelled in accordance with the applicable regulations. Suppliers must provide safety data sheets in Icelandic.

6. 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 shall be Icelandic kronur unless otherwise agreed. 
  • An order number must appear on all invoices. There must be a separate invoice for each order.
  • Information about the payee's bank and account number must appear on invoices. If there are any changes to the supplier's information, such as social security number, bank account, etc. please contact the financial department of HS Orka hf., email address: bokhald@hsorka.is
  • HS Orka hf. only accepts electronic invoices. You can send an invoice through Advania's messaging service or at sendareikning.hsorka.is
  • If an invoice is sold to a third party, for example a debt collection company and therefore the invoice is not paid to the sender, the creditor must be notified separately at bokhald@hsorka.is.
  • Lack of the above information can lead to delays in payments, and HS Orka hf. will bear no costs for such delays.

7. General information about invoices

  • Invoices on paper should be sent to: HS Orka hf., Svartsengi, 240 Grindavík.
  • Invoices received in electronic form (scanned in) must be sent to bokhald@hsorka.is. Electronic invoices must be received via Advania's messaging service.

8. Right to return goods

  • HS Orka hf. reserves the right to return products to the supplier within 30 days of delivery, provided that the products are unused and in their original packaging.
  • However, this does not apply to products that have been specially ordered according to the wishes of HS Orka hf. unless the products do not meet the requirements and product descriptions that the suppliers had submitted before the order took place.

9. Insurance

  • HS Orka hf. has comprehensive insurance on goods in transit from the point of delivery.
  • HS Orka hf. does not pay the supplier separately for insurance on products that the supplier transports to the delivery point.

10. Order Confirmations

  • Orders must be confirmed in writing by email to innkaup@hsorka.is within one working day from the date of the order.

11. Partial delivery

  • It is not permitted to deliver part of the ordered products, except with the approval of HS Orka hf.'s finance department. In cases where partial processing takes place without the consent of HS Orka hf. the respective delivery is considered the final delivery of the order and is considered a default order.

12. Service Accounts

  • All invoices for construction or maintenance projects received by HS Orka hf. must have a reference to the order and work order number or contract number. A separate invoice must be made for each work performed.
  • An invoice will not be approved unless certain supporting documents are attached to the invoice, such as an approved working time report, material report or other documents relevant to the payment of an invoice and according to a contract.
  • Invoices must show in a clear and distinguishable manner the amount for work or materials and the share of value added tax in Icelandic kronur. The invoice must also break down the total costs for work, materials and the total number of working hours. A sales invoice must be issued in the month the work is done.

13. Non-compliance

  • The supplier must notify HS Orka hf. of foreseeable non-fulfillment of its obligations according to the purchase order and these terms and conditions.
  • If the supplier does not substantially fulfill its obligations according to the purchase orders, HS Orka hf. may cancel a purchase order.

14. Force Majeure

  • Neither party shall be liable to the other for non-fulfilment of obligations according to purchase orders and these purchase terms, if the reasons for the non-fulfilment can be attributed to circumstances beyond our control (Force Majeure).
  • Force Majeure can only be declared if the circumstances that prevent the fulfillment of the purchase are not due to the party declaring Force Majeure and they arise after the purchase order was made or confirmed.
  • Force Majeure includes acts of war, occupation, revolutions, riots, vandalism, fires, transport bans, etc.

15. Assignment

  • Purchase orders from HS Orka hf. are not permitted to be transferred to a third party in whole or in part, without the written consent of the finance department of HS Orka hf.

16. Price adjustment and changes

  • All price adjustments and changes must be notified at least one month in advance to the finance department of HS Orka hf.

17. Health and safety requirements

  • HS Orka hf. demands that the employees of suppliers who enter the work area of ​​HS Orka hf. meet all safety requirements for equipment, including safety clothing, helmets, glasses, etc. All suppliers should regularly review the company's "Environmental, Safety and Health Policy", which can be found on HS Orka's website, www.hsorka.is.

18. Working labour conditions

  • The supplier must enforce the laws and regulations that apply to relations between parties in the labor market. The supplier must ensure and be responsible for that all employees, regardless of whether they are employees of suppliers, subcontractors or temporary workers, receive wages and working conditions in accordance with the applicable collective agreements and the laws of the profession that falls under their field of work. The above shall apply regardless of the employee's length of service. The terms of employment include, among other things, health and accident insurance and other agreed rights 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 present documents that HS Orka hf. considers sufficient to demonstrate that the above-mentioned rights and obligations are fulfilled within 10 calendar days from the date on which it is requested. A statement from a competent party can be considered sufficient proof, such as the confirmation of the relevant trade union. If documents are not delivered within that time or the supplier cannot demonstrate that the above-mentioned rights or obligations are fulfilled, HS Orka hf. may remove the supplier as an approved supplier of HS Orka hf. Due to unpaid wages, HS Orka hf. is authorized to withhold payments and reserves the right to allocate payments to the victim/employee in consultation with the relevant trade union as appropriate.

19. Disputes and jurisdiction

  • Disputes that may arise as a result of these purchasing conditions shall be settled before the Reykjanes District Court.

These terms apply from April 20th  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 www.hsorka.is.