# Tooling Ownership and Custody Agreement Template > Source: https://netray.co/tools/tooling-ownership-and-custody-agreement-template > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer A tooling agreement for molds, dies, fixtures and gauges that sit at a supplier, covering title, marking, maintenance, insurance and release on request. ## Category compliance-legal ## Audience - Buyer - Tooling engineer - Supplier quality engineer - Business owner ## Tool **Kind:** template **Output:** document **Fields:** #### Tooling owner **Key:** owner **Type:** text **Default:** Acme Precision Ltd #### Custodian (supplier) **Key:** custodian **Type:** text **Default:** Northfield Components Inc #### Effective date **Key:** effective **Type:** date **Default:** 2026-11-01 #### Tooling location **Key:** site **Type:** text **Default:** 42 Foundry Road, Pune, India #### Tooling description **Key:** tool_desc **Type:** textarea **Default:** Two-cavity injection mold for housing PN-48213 Rev C, steel P20, with associated gauges and inspection fixtures. #### Replacement value **Key:** value **Type:** text **Default:** USD 68,000 #### Maintenance paid by **Key:** maint **Type:** select **Options:** - Custodian (routine), Owner (major repair) - Custodian - Owner **Default:** Custodian (routine), Owner (major repair) #### Expected tool life (shots or hits) **Key:** shot_life **Type:** text **Default:** 500,000 shots #### Release period after written request (days) **Key:** release_days **Type:** number **Default:** 15 #### Idle period before review (months) **Key:** idle_months **Type:** number **Default:** 24 #### Governing law **Key:** law **Type:** text **Default:** the State of Texas, USA **Blocks:** #### Tooling Ownership and Custody Agreement **Body:** Made on {{effective}} between {{owner}} ("Owner") and {{custodian}} ("Custodian") for the tooling described below, located at {{site}}. #### 1. Tooling Covered **Body:** {{tool_desc}} Replacement value: {{value}}. Items are listed by asset number in the schedule below and in any later schedule signed by both parties. #### 2. Title **Body:** Title to the Tooling is and remains with Owner, whether or not Custodian paid for part of it or amortised its cost in piece prices. Custodian will not sell, lend, pledge, grant any lien over, or allow any other party to claim an interest in the Tooling, and will tell any lender or landlord that the Tooling belongs to Owner. #### 3. Marking and Records **Body:** Custodian will permanently mark each item with Owner's name and asset number, keep it identifiable and separate from its own tooling, and keep a log of location, use, repairs and shot or hit counts. Owner may inspect the Tooling and records on reasonable notice. #### 4. Use **Body:** Custodian will use the Tooling only to make products for Owner, in line with the agreed process and specification. Use for any other party or purpose requires Owner's prior written consent. #### 5. Maintenance and Repair **Body:** Maintenance responsibility: {{maint}}. Custodian will follow a preventive maintenance plan, report damage or wear promptly, and will not modify the Tooling without written approval. Expected life is {{shot_life}}; Custodian tells Owner when wear approaches that level so replacement can be planned. #### 6. Risk of Loss and Insurance **Body:** Custodian bears risk of loss or damage while the Tooling is in its custody, except for normal wear, and will insure it at replacement value naming Owner as loss payee, providing a certificate on request. #### 7. Release and Return **Body:** On written request, and at any time including on termination or a dispute about price or payment, Custodian will release the Tooling to Owner within {{release_days}} days, in good condition apart from normal wear, together with related drawings, maintenance records and setup data. Custodian will not withhold the Tooling as security for any claim. Reasonable packing and freight are for Owner's account unless the release follows Custodian's breach. #### 8. Idle Tooling **Body:** If no purchase order has been placed for {{idle_months}} months, the parties will review the Tooling and agree whether to retain, store, return or scrap it. Scrapping requires Owner's written approval. #### 9. Replacement Tooling and Cost Sharing **Body:** If the parties agreed to amortise tooling cost in piece price, record the total, the quantity over which it is recovered and the treatment of any unrecovered balance if volumes fall short or the contract ends early. #### 10. Governing Law **Body:** This Agreement is governed by the laws of {{law}}. Custodian agrees Owner may file notices of its ownership interest where local law allows. #### Tooling Schedule **Table:** **Columns:** - Asset no. - Description - Part number - Cavities - Location - Value **Rows:** #### Execution **Signatures:** - Owner authorised signatory - Custodian authorised signatory **Notes:** Starting point only, not legal advice. Rules on title, possessory liens, bailment and registration of ownership interests vary widely by country and state, so confirm with local counsel before relying on this for high-value tooling. ## Content **Intro:** Molds, dies and fixtures often sit at a supplier's plant for years, and the question of who owns them only surfaces when the relationship sours. This template puts ownership, custody, insurance and return rights on paper while everyone is still friendly. **Sections:** #### How to use the template **Body:** Describe each tool or tool set, list asset numbers in the schedule, and enter the replacement value you would need to insure. Choose who pays for routine and major maintenance, and set a release period for returning tooling on request. Export to Word, add the schedule, and attach it to the master manufacturing services agreement. Photograph marked tools at the supplier and record the shot count at signing so later wear can be verified. **Bullets:** - One schedule line per physical asset - Mark tools with your name and asset number - Record shot or hit counts at handover - Ask for the insurance certificate yearly #### Why the release clause matters most **Body:** The practical risk is not that a supplier steals tooling; it is that tooling becomes leverage in a price or payment dispute. A clause that lets the owner collect tooling within a fixed number of days, regardless of disputes, removes that leverage. Pair it with an agreed process for transferring drawings, setup sheets and maintenance history, since a mold without its process data can take weeks to qualify at another supplier. #### Owner, custodian and cost-sharing **Body:** If you pay for tooling upfront, ownership usually follows. If the supplier funds it and recovers cost through piece price, ownership is commonly shared or the customer buys it out as amortisation finishes. State this clearly: total tooling cost, recovery quantity, and what happens to the unrecovered balance if you leave early. You can test the numbers with a tooling amortisation per piece calculation before agreeing a price. #### Common mistakes **Body:** Not marking tooling is the most frequent error, and it matters if a supplier is insolvent and a liquidator needs to identify what belongs to whom. Others include assuming a purchase order alone transfers title, leaving insurance unclear, and not tracking idle tooling that quietly ages. Also check local registration options: some countries allow filing a notice of ownership of equipment held by another party, which can protect you against a supplier's creditors. **Cta:** If you would like tooling assets, shot counts and maintenance due dates tracked from your ERP and shop floor data, we can discuss how that could work. **Faq:** #### Does paying for tooling mean I own it? **Answer:** Usually it is strong evidence of ownership, but it is not automatic everywhere. Put title in a signed document, mark the tools and keep the invoices. Local law on title and bailment varies, so confirm with a local lawyer for valuable tooling. #### Can a supplier hold my tooling during a payment dispute? **Answer:** Without a clear clause, some jurisdictions allow a supplier to claim a lien over goods in its possession. A release clause stating tooling must be returned regardless of disputes helps, although enforcement still depends on local law. #### Who pays for tooling maintenance? **Answer:** It is negotiable. A common split is the supplier handling routine cleaning and preventive maintenance as part of piece price, and the owner paying for major repairs or refurbishment caused by normal wear. Record the split and the trigger for major repair. #### What should the schedule include for each tool? **Answer:** Asset number, description, part numbers made, cavity count, location, replacement value, date of manufacture, shot or hit count at handover, and the maker. This lets you identify, insure and value the asset later. ## Search terms tooling ownership agreement template, customer owned tooling agreement, mold ownership agreement, tooling bailment agreement, tooling custody supplier agreement, die and fixture ownership contract, tooling return clause --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json