The various terms and conditions to be included in the purchase order or purchase contract, followed by the globally accepted delivery terms - incoterms and the technical annexes that need to accompany a purchase order

1. preparing
contracts
01
terms conditions
standard set of boiler plate
terms to be included in contract
03
tech specs & annex
additional information and
arrangement to be conveyed
02
delivery terms
standard terms of delivery
accepted across the globe

2. terms & conditions

3. basic
clauses
scope
‘statement of work’ or ‘scope of supply’
price and payment terms
‘the price’ and how it will be paid over what period and portions
milestones
defining the different stages of concerned procurement

4. delivery
conditions
timeline of deliveries
timeline for different batches or quantity of delivery
incentives and fines
bonus for early delivery and damages for delay
timeframe of contract
duration of the contract or date till expiry of the arrangement

5. delivery
conditions
no later than
due date is the last acceptable
date of delivery
on or before
can be delivered early but latest
should be by the due date
no earlier than
should not be delivered earlier
than the mentioned date
on or after
to be delivered on the mentioned
date or later but not earlier
deliverable
the concerned product or the service outcome

6. delivery
conditions
limitation of liability
transfer of ownership of materials as per incoterms
insurance
type of insurance, compulsion and scope of buyer or seller

7. product
support
warranty
scope and extent of warranty
installation and service
services pertaining to set-up, installation and trial of product
after sales
commitment of after sales services and spares support

8. quality
criteria
inspection and acceptance
arrangement for inspection and deliverable acceptance criteria
performance bonds
unconditional financial bonds for performance guarantee
performance reporting
types of reports, items covered in each and frequency

9. quality
criteria
sub contractor qualification & approval
qualification criteria for sub contractor & approving authority
change handling
spectrum of changes and procedure for handling

10. troubleshooting
arrangement
termination arrangement
procedure to follow and arrangement applicable upon termination
dispute resolution
procedures, preferred dispute resolution & applicable jurisdiction

11. delivery terms
incoterms
transfer of liability
at what point is the ownership transferred to buyer
globally accepted
incoterms is globally accepted to regulate trade activities
current version: 2020
versions are updated every four years

12. common
incoterms
EXW
ex-works – loaded on carriage
CIF
carriage up to destination port
with cargo insurance
DPU
unloaded at destination excluding
destination customs
FOB
on board shipping vessel
DAP
carriage up to destination
excluding destination customs
DDP
carriage up to destination including
destination customs

13. technical
specifications
material grade
specific grade or quality of raw
material to be used
drawings
designs or detailed drawings to
be provided for manufacturing
procedure requirements
any pre-requisites or mandatory
procedures to be followed
built
specifications / features regarding
the product-built quality
confirming standards
established standards for product
design or quality

14. other
provisions
progress reporting
items covered and frequency of
progress reporting
site inspection
authority of client to visit supplier
site during the process
third party validation
participation and scope of third
parties in the process
periodic review
joint review of the status with
client and supplier reps
client representative
point of contact for the supplier
for coordinating the process

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