General Cost Estimate Terms & Conditions

1. Electric Pencil wherever used in these terms and conditions shall mean Electric Pencil (Pty) Ltd reg 2021/783847/07
2. ‘Client’ wherever used in these terms and conditions or in the proposal shall be the client and/or company referred to on the face of the proposal.
3. This cost estimate is valid for seven days and is based on the information provided by client, and may be inappropriate if additional information is forthcoming, or requirements and specifications change.
4. The cost estimate is subject to final content, the availability of materials and price increases.
5. Electric Pencil undertakes to present the proposed project for the client’s acceptance. Should the client’s requirements change after the acceptance of this cost estimate, Electric Pencil reserves the right to estimate for such enhancements or alterations as a new project.
6. Changes to scope will be billed at an hourly rate depending on the type of work and come into effect in any case where the scope as laid out in this cost estimate is altered after acceptance of this contract. My current hourly rate is R 750 per hour.
7. A design concept of two pages will be presented for approval of the user interface. One set of changes are available for the look & feel. These changes must be communicated all at once by email.
8. All projects include one set of changes to content of produced pages which must be communicated by email all at once. Any further changes will be charged for at my current hourly rate.
9. Acceptance of this cost estimate carries with it an automatic rejection or cancellation fee of 50% of the total and all progress payments made during the production are non-refundable in the event of the project being discontinued by the client for whatever reason. In such an event Electric Pencil owns all assets designed and developed up to that point.
10. Payment terms: Unless otherwise agreed in writing, a 50 % deposit is required for commencement. A further 25% progress payment is due at an agreed upon point in the project when progress is staged. Proof of payment is required for production to continue. The final 25% is due upon completion of the project no later than 3 weeks after progress payment has been received. The project will be handed over after proof of payment has been received. Any amount not paid as per agreed timelines shall bear interest at the current prime interest rate charged by First National Bank Limited.
11. Electric Pencil is VAT registered (VAT: 4610314611) and so all prices estimated shall be inclusive of Value Added Tax (VAT).
12. The client hereby indemnifies Electric Pencil against any claims of any nature by any third party, including but not limited to claims for breach of copyright, license, or patent, pertaining to the data and content provided by the client.
13. The parties agree that the client shall own only the final implemented assets of the project deliverables including the following file formats: .html, .css, .php, .js, .png, .gif, .jpg, .mp4. All ideas, concepts, assets, intellectual property, designs or files developed prior to the final acceptance version of the project including, but not limited to the following computer files: .psd, .eps, .ai, .prproj, .afphoto, .afdesign, .afpub and other materials remain the sole property of Electric Pencil.
14. All time periods discussed by the parties and agreed to by Electric Pencil shall be estimates only. All reasonable steps will be taken to ensure prompt delivery of promised services and assets. Any changes to estimated times and/or costs will be communicated as soon as possible.
15. All content and assets required for production of the project are due before the project commences. Project commencement starts after the 50% deposit has been paid. Content and assets not delivered at this point may not be included in the project at the discretion of Electric Pencil and will not affect progress and final payments as set out in point 7.
16. Projects not completed before agreed upon times due to late delivery of content, assets and or sign-offs and approval on look & feels, progress reports or final sign-offs will be billed for in full according to time periods specified. Any assets received after commencement of the project will be added at the soonest time convenient to Electric Pencil.
17. Although every effort will be made to complete the project on time, should the project be delayed due to circumstances beyond my control, Electric Pencil will not be liable for any costs as a result of such a delay.
18. Electric Pencil reserves the right to add a link to our website in the footer area of the website. The link will include the following copy: Designed & Developed by Electric Pencil with the link to: www.electricpencil.co.za

Additional Terms & Conditions for Retainers 

1. Client will retain Electric Pencil over twelve months for [number of hours stated in the cost estimate] per month at a discounted hourly rate of [discounted rate stated in the cost estimate] per hour excl VAT.
2. Retainers are paid in advance to retain the services for the month ahead.
3. A minimum charge of [hourly rate stated in cost estimate] or 60min per piece of work will be logged for any piece of work.
4. Retained hours are not transferable from one month to the next. If the retainer is overused by 10% or less no extra billing will occur, if the retainer is underused, up to 15% of the original number of hours will be credited to the next month.