Key terms list of mold procurement contract

Key terms list of mold procurement contract
The most problematic clauses in mold procurement contracts are acceptance, quality assurance, intellectual property, and change liability.
The acceptance criteria should be quantifiable
It is not enough to state "in accordance with the drawing requirements" in the contract. It is necessary to specify the key dimensions, tolerance levels, and testing methods.
The key items of wheel hub molds include cavity size, parting surface clearance, waterway flow rate, and the airtightness results of the test mold.
Acceptance is divided into three stages: first piece, small batch, and mass production. The criteria for determining each node and the methods for handling non conformities must be clearly stated.
The scope of warranty should distinguish responsibilities
The common industry warranty is 12 months or 30000 to 50000 cycles, whichever comes first. This statement is clearer than 'one-year warranty'.
The warranty should exclude normal wear and tear, misoperation, and use beyond parameters. But the definition of 'normal wear and tear' needs to be written specifically, otherwise it is still a controversial point.
Xinfeng Mold will separately list vulnerable parts in the wheel hub mold contract, clarifying which ones belong to consumables and which ones belong to the warranty scope.
The ownership of intellectual property rights cannot be ambiguous
The ownership of mold drawings, 3D cavity data, and process parameters should be clearly stated in the contract. The common agreement is that the drawings belong to the buyer and the usage rights are shared.
If the product is uniquely designed by the buyer, it should be agreed that the supplier shall not produce the same mold for a third party. This is particularly important for brand owners.
The ownership of the physical mold should also be written. After payment is completed, the mold belongs to the buyer and the supplier shall not retain or mortgage it.
Change and Claim Terms
The cost of mold modification caused by product changes shall be borne by the purchaser; Any defects in mold design shall be borne by the supplier. This should clearly state the criteria for judgment.
The penalty for delayed delivery is often 0.3% -0.5%/day of the contract amount, with a cumulative upper limit of 10% -20%. A ratio that is too low has no binding force.
The scope of claims for quality accidents should include direct losses, and whether it includes losses due to line stoppage needs to be separately agreed upon. The latter has a large amount, and the supplier usually requires a cap.
Design of payment rhythm
The common rhythm is 3:4:3, which means 30% signing, 40% T0 qualification, and 30% mass production acceptance. Full prepayment poses a high risk to the demand side.
It is common practice to retain 5% -10% of the warranty deposit and pay it after the warranty period expires.
The payment node should be bound to the acceptance node, not to the time. Payment by time, the supplier lacks motivation to push forward.
Deliverables List
The contract should be accompanied by a list of deliverables: physical molds, drawings, 3D data, parameter tables, spare parts lists, maintenance manuals, and inspection reports.
Missing parameter table, mass production debugging needs to start from scratch; Lack of spare parts list and procurement of vulnerable parts will delay downtime.
When the deliverables are incomplete, the final payment terms can be set accordingly. This is a more effective means than verbal urging.
The Path of Dispute Resolution
Negotiate according to the terms of the contract first, and if negotiation fails, then proceed to arbitration or litigation. The contract should specify the jurisdiction and applicable laws.
It is recommended to agree on arbitration for cross-border projects. The execution efficiency of arbitration awards is usually higher than that of cross-border litigation, and the cycle is also more controllable.
Frequently Asked Questions
Q: How long is the warranty period usually?
Answer: It usually takes 12 months or 30000 to 50000 cycles, whichever comes first.
Question: Who owns the drawings?
Answer: Common ownership belongs to the buyer, and the right to use can be shared, which needs to be clearly stated.
Q: How much is the reasonable penalty for breach of delivery time?
Answer: Commonly 0.3% -0.5%/day, with an upper limit of 10% -20%.
Q: How to set the payment rhythm?
Answer: Common 3:4:3, bound to the acceptance node.
Q: Do I need to keep a warranty deposit?
Answer: It is recommended to keep 5% -10% and pay upon expiration of the warranty period.
Q: What are the deliverables included?
Answer: Mold, drawing, parameter table, spare parts list, inspection report.
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