1. Subject Matter Of The Agreement
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The subject matter of the agreement between both parties applies to the provision
of conditions for granting the certification which confirms that the management
system (system in following) conforms to the specified standard or other normative
documents for the system. The client is aware of the fact that the system certification
is performed on the basis of a dynamic system audit at the given moment. The client
is bound to assure that the relevant provisions of this agreement will be met by
the organisation whose management system will be certified (organisation in following).
LMS will perform the certification according to the application of the client and
the price offer accepted by the client.
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2. Start Of Agreement Validity
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This agreement is applicable after it is signed by both parties, and the LMS price
offer is signed by both parties and the filled in LMS form APPLICATION FOR MANAGEMENT
SYSTEM AUDIT is signed and submitted by the client, all included without any exclusions.
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3. System Certification Prosedures
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Besides provisions given in 8 TEMPORARY PROVISIONS, both parties agree
with keeping the steps and relevant provisions of the certification programme and
bind to do everything necessary to keep the correct fulfilment of this procedure.
LMS is authorised to submit unilaterally non-essential amendments to this procedure
that do not influence the content of the agreement between the parties.LMS can utilise
subcontractors to meet the purpose of this agreement.
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3.1 Documentation
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By signing this agreement the client agrees to submit the following documentation
to LMS or its representative before the beginning or during the certification audit:
- List of the system procedures indicating the dates of their issue - documentation
indicating in broader connections how the requirements for the system are met (usually
"manual") - list of services and/or products produced in the system to
be certified. The client confirms that these documents reliably define the system
status on the date of the certification audit and that they identify the scope and
fields of activities which are the subject of the certification.
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3.2 System Audit
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The certification audit consists of the document review and of the audit in situ
by the auditor(s) nominated by LMS. The degree of conformity of the system and the
system standard is assessed. The client can appeal against the auditors nominated
by LMS. To be valid, the appeal has to be written and submitted within eight days
after the names of auditors are announced in writing to the client by LMS. In such
a case, LMS has to nominate new auditor(s) and is authorised to change the date
of the audit. After the audit, LMS shall submit to the client the list of nonconformities
and observations with the corrective action(s) request and the audit report. The
client / organisation binds to propose and carry out corrective action(s) without
undue delay and LMS shall assess whether the content and the term for carrying them
out is acceptable. In some cases LMS can decide to perform an extraordinary audit
of implementation and effectiveness of the corrective actions. This assessment represents
minimum 1/2 day audit.
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3.3 Certification
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Based on the audit report, the list of nonconformities and the action plan of the
client taking corrective actions, LMS will decide autonomously about granting, postponing
or the rejection of the certification. This decision is made in writing to the client.
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3.3.1 Granting Certification
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a)
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If the certification is granted, the certificate is issued in the language and for
the activities according to the application, and is sent to the client and recorded
into the LMS list of certificated organisations & details will be updated on
web pages also.
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b)
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Certification is valid only for the certificated organisation, i.e. for the system
recorded in the certificate applicable for the products / services recorded in the
certificate. Any transfer of the certification and the certificate is explicitly
forbidden.
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c)
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Certification is valid for one year however total validity is 3 years subject to
surveillance audits are performed (see below) and the certification is not suspended
or withdrawn by LMS.
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d)
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The surveillance audit represents a visit of an auditor, nominated by LMS to ensure
the maintaining of the system level. Surveillance audits will be performed every
12 months. However, this number could be changed if it is imposed by any official
regulation or based on the recommendation of the auditor.
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e)
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LMS can perform follow-up audits out of the regular cycle, if the system amendment
(see 8.2) is considered by LMS to be the principal or if the scope of the application
is changed.
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3.3.2 Postponment Of Granting Certification
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LMS can decide autonomously to postpone its decision on certification while the
required corrective actions are implemented by the organisation. After these actions
are executed, the auditor will perform a new audit. Based on this, LMS will decide
autonomously about granting the certification. The extent of this new audit depends
on the extent of the nonconformities and relevant corrective actions.
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3.3.3 Rejection Of Certification
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In case the certification is rejected, the validity of this agreement automatically
comes to an end three months after the rejection is announced to the client, if
the client does not submit an appeal (see 5) or will not submit a new application
for audit. The costs will be charged by LMS to the client in accordance with the
beforehand agreed prices regardless to any appeal.
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4. Renewing Certification
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The certification must be renewed before its expiry. Renewal of the certification
requires a total audit. This agreement is the order for certification renewal. Also,
a new LMS price offer must be agreed by the client.
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5. Restricting, Suspending, Withdrawing And Expiry Of Certification
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Provisions 5.1 to 5.3 are valid for the entire scope of certification or for its
part.
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5.1 - Restricting Certification
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Restricting certification is a temporary arrangement, not exceeding a 3 months period
and will be applied if the critical nonconformities of the system are identified
(e.g. during surveillance audits), or if the certified organisation does not submit
adequate corrective actions for identified nonconformities in time. Restricting
will be announced to the client and organisation in writing and becomes valid 30
days after it is announced to the client, except if the client appeals within time,
according to the procedure given in clause 6.
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5.2 - Suspending Certification
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LMS is authorised to suspend the certification in case of detecting (e.g. during
the regular, follow-up, or surveillance audit) that the system is not in conformity
with the standard or in case the obligations of this agreement including financial
obligations are not kept to by the client / organisation. Suspension can come with
or without previously restricting the certification. Suspension will be announced
to the client and the organisation in writing, and becomes valid 30 days after it
is announced to the client, except if the client appeals within time, according
to the procedure given in clause 7.
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5.3 - Withdrawing Certification
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The certification will be withdrawn:
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a)
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when the activities subjected to the certification cease to exist e.g. suspension
of the activity, bankruptcy etc. (in case of bankruptcy the certification loses
its validity on the day the bankruptcy is announced)
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b)
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in case the agreement is cancelled (see 9).
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5.4 - Expiry Of Certification
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The certification automatically and legally loses its validity after expiry, unless
it is renewed.
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5.5 - Consequences
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In case of restricting the certification, neither the client nor the organisation
may either lay claim to the certification or refer to the certification in external
contacts (e.g. offer, negotiations about a contract, publication, advertisement)
during the time of restriction. In case of suspending, withdrawing or expiry, the
client / organisation is obliged to immediately send the certificate to LMS and
to stop any use of the certification or any reference to it. Any misuse or misleading
of this, will lead to penalties. Besides this, LMS can publicise the suspension
and the withdrawal. In case of suspension, withdrawal or expiry, obligations to
LMS will legally cease to be.
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6.0 - Appeal And Claim Procedure
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6.1 - Resolving Of Disputes And Complaints
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LMS shall constructively and quickly resolve all Appeals and complaints from the
client. In case it is not possible to come to an acceptable solution, or a suggested
procedure is not acceptable, the client can appeal according to the following provisions.
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6.2 - Internal Appeal
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In case of dissatisfaction with resolving a complaint or appeal, also the rejection,
restriction or suspension the certification, the client can appeal. This appeal
has to be presented within 30 days after LMS announces its decision. LMS is bound
by the agreement to examine this appeal with the necessary attention and independence,
and announce its decision with explanation in writing within 30 days. If LMS agrees
to the appeal, it shall accept the new decision. If LMS decides to reject the appeal,
it will be of the same effect as the original decision, with the notification that
the procedure of another internal appeal is not possible. Each party bears its own
costs connected with this procedure of an internal appeal.
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6.3 - External Procedure
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After the procedure of an internal appeal is completed, or if it was not acted in
accordance with the procedure for an internal appeal, each party can submit a disagreement
related to this agreement for arbitration through the accreditation body or an independent
third party, or legal interpretation if necessary. This procedure has no suppressive
effect to the LMS decision.
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7.0 - Special Obligations Of The Cclient / Organisation
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7.1 - Access
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The client / organisation is bound by the agreement to perform all necessary arrangements
to meet the purpose of this agreement, to permit LMS representatives access to buildings
and establishments of the organisation with an accompaniment of the organisation
during regular working hours, and instruct them about keeping provisions on work
safety, fire safety and protection of the environment. It also guarantees the right
to review all the documentation, data, records and activities considered by LMS
as important, to interview its personnel and to gain their full co-operation.
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7.2 - Obligation To Report
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The client / organisation is bound by the agreement to inform LMS immediately in
all cases and especially during periodical and follow-up audits, or during the renewal
of certification about all planned and executed amendments of the system legal,
commercial .status of ownership, organisation & management, significant events
concerning health and safety and any related findings from any third parties, contact
address & sites and its scope compared to the certificate. Neglecting this obligation
to inform about the forthcoming changes can lead to the suspension of the certification.
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7.3 - List Of Complaints
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The organisation is bound by the agreement to maintain the list of all complaints
and corrective actions (internal and/or external) obtained in the certified system
which shall be submitted to LMS representatives during each audit. Maintenance of
the list is an imperative part of the system and it is the condition for maintaining
or renewing the certification.
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7.4 - Maintaining System
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The client / organisation is bound by the agreement to do everything necessary to
ensure the functionality of the system and its conformity with the standard.
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7.5 - Utilising Certification
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An organisation can utilise its certification and LMS certification mark in commercial
relations and in the media (e.g. in documents, brochures, advertisements etc.) in
accordance with LMS conditions. The organisation can utilise its certification only
to express that the system meets the specified standards or other normative documents,
still for the activities certified. The organisation can neither use its certification
nor the certification mark to mark its services, products and coverings, nor any
other way indicate that the product or the service are conforming or approved by
LMS. The organisation must not use its certification in a way that could endanger
LMS reputation and must not make statements which could be considered by LMS as
misleading or unauthorised. The client / organisation shall ensure that no certification
document, mark, report or any of their parts be used in a misleading way. Any use
or reference which could lead to a mistake will cause immediate suspension of the
certification. In such a case, LMS will be entitled to require correction in the
pertinent publication on the client�s expenses without the possibility of
presenting a claim to recompense possible losses. The client / organisation must
not in any circumstance allow a third party to use the Certification and the certification
mark neither free nor for a charge. LMS is entitled to claim compensation of any
damage caused by incor.
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8.0 - Temporary Provisions
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If any national or international regulation concerning the system certification
becomes valid, both parties agree to keep and if necessary to amend this agreement
in accordance with this regulation.
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9.0 - Validity And Voiding Of The Agreement
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This agreement was concluded for an unlimited period. Both parties are entitled
to terminate this agreement unilaterally with a 6-months notice period upon written
notice communicated to the other party by a recommended letter. The notice period
begins on the day of the postal stamp of the registered letter. LMS is entitled
to give notice of this agreement at any time without the notice period. If the client
/ organisation does not comply with this agreement, including financial obligations.
LMS is entitled to present a claim for compensation of losses resulting from it.
Notice of this agreement has the same results as withdrawal of the certification
according to clauses 5.3 and 5.5
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10 - Confidentiality
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Both parties are bound by the agreement to keep confidentiality towards third parties.
The obligation of confidentiality remains valid for both parties, also after this
agreement is finished. information shall not be disclosed to a third party without
the written consent of the both parties. Where the certification body is required
by law to release confidential information to a third party, the client or individual
concerned shall, unless regulated by law, be notified in advance of the information
provided.
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11 - Publicity
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Both parties and the organisation are entitled to make public the fact that the
certification of the organisation is going on or has finished. If a previous agreement
is not contrary.
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12 - Probihition Of Transfer
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The client / organisation must not transfer its rights and obligations unless LMS
gives written permission.
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13 - Prices, Price Adjustment And Maturity Period
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Financial conditions are agreed between the client and LMS or, a LMS representative
in the residential country of the client.
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14 - Responsibility And Legal Claim
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This agreement is an agreement on work, not on the result. LMS shall be responsible
only for the direct losses caused to the organisation resulting from material negligence
or a serious mistake by LMS, its bodies, appointed persons, subordinates, representatives
or suppliers. This responsibility is limited to the amount equal to 10 multiple
of the amount accepted by LMS or its nominated representative based on the survey
of results of the material negligence or serious mistake. All claims to compensation
lose their validity six months after the event that the claim is based on.
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15 - Recruitment Of Personal
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The client is bound by the agreement not to recruit LMS personnel and representatives
or use their services except from previous written approval by LMS. Breach of this
agreement gives LMS the reason to terminate this agreement immediately, and legally
entitles LMS to claim financial compensation for the losses in the amount of the
gross annual income of the person whose services were lost for LMS, minimum in the
amount of seventy multiple of the minimal monthly salary in the client's country
in the time the LMS's person has left. To prevent misunderstanding, the client
/ organisation has to always consider all the persons taking part in the performing
of this agreement are the employees of LMS.
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16 - Applied Law And Competence
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Both parties agree to apply the law of the Indian Govt. for this agreement. Any
doubts considering the wording or interpretation of this agreement will be solved
by mutual agreement of both parties; in a contradictory case the procedure given
in point 7 of this agreement will be used. Both parties agree that contractual relationships
arising out of this agreement shall be governed in parts not provided for in this
agreement by the relevant provisions of applicable legal regulations of the INDIA,
in particular by the Commercial Code, without the application of the conflict of
laws clauses.. The Parties proclaim they have read this Agreement, have understood
its contents, and, expressing their free and serious will, in witness whereof, they
have signed it by their own signatures.
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