Who bears the risk of loss or damage to supplies until specific conditions are met?

In the context of contracting, it is typically the contractor who bears the risk of loss or damage to supplies until specific conditions are met, such as delivery or acceptance of those supplies. This understanding is crucial in both government and commercial contracts, where the responsibility for the supplies can vary based on the agreements made.

The contractor assumes this risk to ensure that they maintain accountability for the supplies throughout the delivery process. By doing so, it incentivizes them to manage the supplies carefully, safeguarding them against loss or damage. Additionally, this risk is usually outlined in the contract terms, clearly stating when the responsibility for the supplies transfers from the contractor to the government or the purchasing entity.

This arrangement is essential because it establishes who is responsible for the goods at various stages of the contract. It protects the interests of the government or buyer by ensuring that they receive the full value of what they have paid for, while also providing the contractor with the clarity needed to fulfill their obligations effectively.