Guidance notice to all EFTCO Members dealing with Tank Cleaning and Complementary Services (6 November 2009)
The EFTCO Council’s meeting of 5 November dealt with the issue of providing cleaning and equipment control services beyond the standard provision of a tank cleaning (tanks and silos) . See definition of ‘clean’ : a tank shall be described as clean when there are no visible traces or odor of the last product or cleaning agent following an inspection via the man-lids.
This contractual relation between cleaner and client is meant to be a straight forward operation of cleaning a tank or silo from its last carried product load declared by the client, cleaned with adequate cleaning equipment and managed in accordance with the legal waste disposal requirements of the cleaner’s operating permit. The means to conclude such agreement are sufficiently known by both parties.
This contractual commitment changes when in addition the client asks for complementary or additional cleaning services such as some of the examples below:
- Cleaning the tank or silo in relation to next particular loading operation (i.e. special cleaning provisions)
- Cleaning additional equipment of pumps, hoses, gaskets, valves etc.
- Removing the grease from an air compressor (usually mounted on the truck and not on the silo: note that the silo may be pulled by another truck the next day)
- Inner inspection (tank entry) of the tank wall and corners not visible from the man-lid, followed by a wall-test
- Cleaning a tank container and the equipment in an off-hire situation, where the expectation of the hirer/lessor will be greater than just “fit for next load”
- Operation of manometer and temperature gauge.
Whilst providing these services are a business opportunity in the tank cleaning industry, EFTCO strongly recommends that its members carefully assess the consequences of committing to a performance agreement with quality assurance connotations, because these additional responsibilities may expose the tank cleaner to consequential damage claims in the event of a product quality contamination further down the supply chain line. The standard assurance offered to all customers by the EFTCO “definition of clean” is limited and therefore any action or decision by the cleaning station to extend their potential liability in this way should not be taken without due consideration of the potential consequences. Members may therefore wish to declare the terms and conditions under which the extra services are provided.
EFTCO has been contacted recently by different parties involved: both the transport sector and the chemical industry are very much concerned with the issue since their customer claims are increasing in number and in value. Some insurance companies are covering both parties at the same time: the consequence is they turn the claim towards the cleaner. In some other cases where claims escalate into court, the judge claims “that the cleaner should have known better when accepting the work”.
Considering the above EFTCO distributes this guidance notice for the members and for whom it might concern. At the same time the EFTCO Council has decided to take the initiative to work out a comprehensive guideline with all parties involved including insurance companies and with the support of legal advice.
Members will be informed soon of the outcome of the first step of the initiative.
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