# Equipment Purchase Contract Review Checklist for Buyers > Source: https://netray.co/tools/equipment-purchase-contract-review-checklist > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer A buyer's checklist of what to confirm before signing a contract for CNC machines, lines or other capital equipment. ## Category compliance-legal ## Audience - Plant manager - Buyer - Operations director - Controller ## Tool **Kind:** checklist **Scoring Note:** Items marked critical should be settled before signing. A contract with several open critical items is not ready for signature. **Groups:** #### Scope and specification **Items:** **Text:** Machine model, configuration and options are listed by part number **Critical:** true **Text:** Technical specification and performance targets are attached as an exhibit **Critical:** true Included accessories, tooling, software licenses and manuals are itemized Exclusions are stated, such as foundation, utilities, rigging and permits Software version and control model are named Spare parts kit and consumables included at start-up are listed Order of precedence between quote, specification and contract is stated #### Price, payment and delivery **Items:** **Text:** Price, currency and what is included in it are clear, including freight and installation **Critical:** true **Text:** Payment is milestone based and a final portion is held until acceptance **Critical:** true Advance payments are protected by a refund guarantee or bond where appropriate **Text:** Delivery date, delivery terms and risk transfer point are stated **Critical:** true Late delivery remedy such as liquidated damages with a cap is included Price adjustment rules for currency and material cost are defined or excluded Taxes, duties and customs responsibilities are assigned Insurance in transit is assigned and evidenced #### Installation and acceptance **Items:** **Text:** Pre-shipment or factory acceptance test criteria are defined **Critical:** true **Text:** Site acceptance test criteria are measurable, such as cycle time, accuracy and uptime **Critical:** true Acceptance cannot be deemed by use or the passage of time without a clear mechanism Seller responsibility for installation, commissioning and operator training is stated Site readiness obligations of the buyer are listed with dates Cure period and remedies if acceptance fails are stated Safety certification and conformity marking for the location are covered #### Warranty and support **Items:** **Text:** Warranty period and start date, ideally from acceptance, are clear **Critical:** true Warranty covers parts, labor and travel Response time and on-site service commitments are stated Spare parts availability period is committed, often 7 to 10 years Remote support and software update terms are defined Warranty exclusions are reasonable and do not swallow the warranty Extended warranty or service plan pricing is quoted #### Risk, liability and legal **Items:** **Text:** Limitation of liability cap is mutual and reasonable for the equipment value **Critical:** true **Text:** Indemnity for intellectual property infringement is included **Critical:** true Governing law and dispute resolution clause are acceptable Title transfer and retention of title terms are understood Termination rights and refund on termination are stated Export control and sanctions clauses fit the buyer and the equipment Assignment and change of control rules are acceptable Force majeure is defined narrowly with a time limit #### Data, software and operations **Items:** **Text:** Ownership of machine data and programs created on the machine is clear **Critical:** true Software license is perpetual or term, and transfer rights are stated Remote connectivity requirements meet your network security policy Source code or escrow arrangements are considered for critical software Operator and maintenance training scope is defined Documentation languages and formats are specified ## Content **Intro:** A capital equipment contract can lock in a six or seven figure commitment, and the clauses you skip at signature are the ones you argue about at commissioning. Use this checklist before sending a contract to legal or to signature. **Sections:** #### How to use the checklist **Body:** Work through each group with the people who will own the outcome: operations for acceptance, finance for payment, maintenance for support, IT for connectivity. Tick items only when the wording is in the draft, not when someone promised it on a call. Anything unchecked becomes a negotiation point or a documented risk. **Bullets:** - Review the contract and every exhibit together - Mark each critical item as agreed or open - Share open items with the seller before the final draft - Keep the completed list with the contract file #### Why acceptance and payment matter most **Body:** The strongest leverage a buyer has is the final payment. If acceptance criteria are vague, the seller can claim the machine is accepted by use while you are still chasing accuracy or cycle time. Tie a meaningful final milestone to measurable acceptance, and make sure the test method and sample parts are written down. #### Warranty, support and liability **Body:** Check when the warranty starts, what it covers and how fast the seller must respond. A warranty that starts at shipment can expire before commissioning ends. Liability caps are normal, but a cap far below the contract value on a safety or performance failure should be discussed with counsel. #### Common mistakes **Body:** Accepting the seller's standard terms without reading the exhibits, relying on a brochure for performance, forgetting site readiness duties, and leaving data and software ownership unspecified. Another mistake is skipping the spare parts commitment, which matters most in year eight when a part goes obsolete. **Cta:** If you want your team's capital approval, vendor quotes and contract terms tracked together against ERP data, Netray can scope a read-only view that supports your review process. **Faq:** #### Is this checklist legal advice? **Answer:** No. It is a practical starting point for a buyer to prepare questions. Capital contracts should be reviewed by qualified counsel familiar with your jurisdiction and the equipment type. #### What payment schedule is typical? **Answer:** Milestones are common, for example a deposit at order, a payment at shipment and a final portion at acceptance. The right split depends on the seller's risk and your leverage, so hold a meaningful final portion until acceptance. #### How long should the warranty be? **Answer:** Twelve months from acceptance is a common baseline for machine tools, with longer terms for key components or by negotiation. Make sure the start date is acceptance, not shipment, and confirm what is excluded. #### Should I ask for a factory acceptance test? **Answer:** For complex or custom equipment, yes. A factory acceptance test with agreed criteria finds issues before shipment, when fixing them is cheaper. Follow it with a site acceptance test under real conditions. ## Search terms equipment purchase agreement checklist, machine purchase contract review, capital equipment contract checklist, cnc machine purchase terms, factory acceptance test contract clause, equipment warranty terms checklist, machinery purchase agreement review, capex contract checklist --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json