If you decide to
outsource your manufacturing you should have a
manufacturer’s agreement with your manufacturer.
As a minimum a
manufacturing agreement should contain the
following:
-
Minimum Order
Quantity (MOQ)
-
Intellectual Property
Rights
-
Licensed Know-How
-
Long Lead-Time
Components (LLTC)
-
Non-Cancelable,
Non-Returnable (NCNR)
-
Release
-
Specifications
-
Upside
-
Downside
-
Delivery of Licensed
Know-How
-
Agreement to
Manufacture
-
New Products
-
Security Measures
-
Pricing
-
Customer Initiated
Cost Reductions
-
Periodic Price Review
-
CM Initiated Cost
Reductions
-
Consigned Materials
-
Lead-Times/Forecasts
-
Extraordinary
Transportation for Late Deliveries
-
Approved Vendor List
-
Schedule Changes
-
Impact of
Rescheduling
-
Engineering Design
Changes
-
Product(s) Testing
and Debug
-
Cancellations
-
Payments
-
Product End of Life
-
Ownership of Property
-
Tool Maintenance
-
Acceptance &
Inspection
-
Defective Units
-
Returned Goods
-
Right to Hald
Production
-
Records
-
Warranty
-
Indemnification
-
Confidentiality
-
Term & Termination
-
Insurance
-
Force Majeure
-
Successors
-
Non-Waiver
-
Governing Law
These are examples and
sources for Manufacturing Agreement:
Sample
Agreement (Make It Big)
SBZ Legal
Forms page
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