ITM Power : Cost of Non Quality (CoNQ)

Cost of Non-Quality Charges

Introduction

ITM acknowledges that the supplier is able to contribute to the containment of nonconformance discovered at any point in the supply chain. For that reason, we encourage a collaborative approach on containment, led and project-managed by the supplier. This can either be done directly by the supplier or through a third party service provider nominated and approved by ITM.

The commencement of supplier led containment activity is subject to ITM's discretion, and will not apply to any quality issues that may be identified at customer/end user level as this will be led by ITM. The associated process that governs its application will comply with the quality requirements of ITM SQRD and fulfil the dates and milestones required by ITM.

Without prejudice to ITM's other rights and remedies (whether in contract or at law) ITM will exercise its contractual right to charge the supplier an administrative charge. The chargeable quality issues are listed in the table below, under the heading of 'Quality Issues costs:

Quality Issues costs: Description	Standard Charges
	(GBP)
Concession	£2,200
Non-conformance identified at receipt inspection/assembly	£4,000
Non-conformance identified at test	£4,000
Non-conformation identified at customer/end user level	£8,500

The administrative charges noted above are a good faith estimate of the internal administrative costs suffered by ITM and are not penalties resulting from the relevant quality incidents.

Document Control

Date	Amended by	Summary of Change	Version #
20/6/2023		Initial Issue	1