Material Procurement Clause Samples
The Material Procurement clause outlines the responsibilities and procedures for obtaining the materials necessary to complete a project or fulfill a contract. Typically, it specifies which party is responsible for sourcing, purchasing, and delivering materials, and may set standards for quality, timelines, and approval processes. For example, it might require the contractor to use approved suppliers or to provide documentation of material costs. This clause ensures that all parties are clear on how materials will be acquired, helping to prevent delays, disputes over quality, or unexpected costs during the project.
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Material Procurement. 4.1 FQS is authorized to purchase materials using standard purchasing practices including, but not limited to, acquisition of material recognizing Economic Order Quantities, Envivio buy policy and long lead time component management in order to meet the forecasted requirements of Customer if FQS feels it is necessary to meet the delivery lead time commitment to Customer. FQS shall purchase parts from only vendors on the Customer’s approved vendor list. Customer will provide an approved vendor list including Customer product number, manufacturer product number, description, sources, and price. Customer recognizes its financial responsibility for the custom material purchased by FQS on behalf of Customer. Customer is responsible for material to the extent that (i) material was purchased by FQS to support the Product forecast and agreed upon safety stock (yet to be agreed); (ii) FQS exercised reasonable business judgment in managing suppliers and lead times; (iii) FQS complied with Customer cancellation instructions in a timely manner (canceled all open orders within one (1) week of receiving instructions); and (iv) such materials cannot be used by FQS for other customers and at other sites of FQS.
4.2 Customer may revise or cancel a purchase order for Product and may also eliminate a component from a Product. If Customer revises or cancels a purchase order (“Order”), or eliminates a component causes excess inventory, FQS shall identify all potential liability of Customer for material on order, material on hand, work in process, and finished goods. FQS shall undertake commercially reasonable efforts to cancel all applicable component purchase orders and reduce component inventory through return for credit programs or allocate components for alternate programs to minimize charges to Customer. Customer agrees to compensate FQS for costs incurred for finished goods (including profit); work in process (including labor performed); material on hand which could not be returned or used for other customers and at other sites of FQS; material on order which could not be canceled; applicable material supplier’s restocking or cancellation fees; and agreed FQS handling charges.
4.3 FQS will report its inventory position to Customer on a bi-weekly basis and at month’s end within three (3) business days, including the following data: quantity of raw material, work in process and any open orders that cannot be canceled due to supplier lead time. Report will specifically iden...
Material Procurement. (a) Seller shall purchase materials to manufacture Products necessary to comply with its obligations to supply Products specified in Exhibit C. Seller shall use in its production of Products such parts and components of a type, quality, and grade as were used in the Products when they were initially qualified under this Agreement. Seller shall make no substitution of any components, raw materials or vendors which would affect the reliability of the Products without Buyer's written consent. In the event such substitution is requested by Seller, Seller shall provide documented evidence of the qualification of such components, raw materials or vendors in accordance with Buyer's Component Qualification Procedures identified in Exhibit K. Seller shall not use materials with date codes older than one (1) year without Buyer's consent.
(b) Buyer's accepted Orders will constitute authorization for Seller to procure, using the purchasing practices set forth in this Agreement, the components, materials and supplies necessary for the manufacture of Products ("Inventory") covered by such purchase orders. ***** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
(c) In addition, Buyer may authorize Seller to purchase, in amounts beyond the amount necessary to fill accepted Orders, the components, materials, and supplies: (i) with lead times greater than ***** days at the time the Order is placed ("Long Lead Time Components") plus ***** days to account for the order, shipment, receipt and manufacturing time and, (ii) purchased in quantities above the required amount in order to achieve price targets ("Economic Order Inventory"), and (iii) purchased in excess of requirements because of minimum lot sizes available from manufacturers ("Minimum Order Inventory"). Together these are called "Special Inventory". Seller shall notify Buyer's Purchaser Representative of its intent to Purchase Special Inventory at least ten (10) days prior to such purchase. Such notice shall contain a detailed identification of the Special Inventory to be purchased, the proposed purchase price, the vendor supplying the Special Inventory, and a reference to Buyer's obligations under this Section. During the ten day period, Buyer shall notify Seller whether or not the purchase of such Special Inventory is authorized. In the event Buyer notifies Seller that Se...
Material Procurement. 4.1 Solectron is authorized to purchase materials using standard purchasing practices including, but not limited to, acquisition of material recognizing Economic Order Quantities, ABC buy policy and long lead time component management in order to meet the PO and long lead time requirements of Brocade, solely in accordance with the authorization procedures set forth in Section 4.2. Brocade recognizes its financial responsibility for the material purchased by Solectron on behalf of Brocade.
4.2 Solectron will purchase specified quantities of long lead time material and Brocade unique material as authorized by Brocade in advance and in writing. Solectron will compile and maintain (and provide an updated version to Brocade on a monthly basis that reflects Brocade's current requirements) a report concerning this long lead time material which will contain: * Brocade part number * Solectron part number * Manufacturer name * Manufacturer part number * Manufacturer description * Lead time * Where used * Quantity per unit of Product * Purchase quantity authorized by Brocade * Purchase price authorized by Brocade * Extended price It is understood and agreed that if Brocade orders Solectron to stop production of Products for Brocade's convenience, prior to the consumption of all material authorized for purchase by Brocade pursuant to this Section 4.2, Brocade will purchase all material as provided in Section 4.3. It is the intention of both parties that Solectron effectively manages the long lead time and Brocade unique material inventory such that the inventory will be completely consumed by the end-of-support of the Products, and Brocade will consequently not have any such material inventory liability.
Material Procurement. Customer’s accepted purchase orders will constitute authorization for VEM to procure, using standard purchasing practices, the labor, and the “Inventory” necessary for the manufacture of Products covered by such purchase orders. The Inventory includes components, materials and supplies. In addition, Customer authorizes VEM to purchase, components, materials, and supplies: (i) with lead times exceeding the period covered by the accepted purchase orders for the Products to the extent necessary for the manufacture of additional Product covered by the Customer’s forecast (“Long Lead Time Components”) and, (ii) purchased in quantities above the required amount for purchase orders to achieve price targets (“Economic Order Inventory”), and (iii) purchased in excess of requirements for purchase orders because of minimum lot sizes available from manufacturers (“Minimum Order Inventory”). Together these are called “Special Inventory”.
Material Procurement. The material procurement undertaking, pursuant to this Agreement, will be carried-out by the Contractor.
6.1 Contractor is authorized to purchase materials using standard purchasing practices including, but not limited to acquisition of materials recognizing Economic Order Quantity, ABC buy policy and long lead time components management, in order to meet the requirements of Customer’s orders and forecasts.
Material Procurement. VA Research's accepted Blanket Purchase Orders will constitute authorization for Synnex to procure, using standard purchasing practices, the components, materials and supplies necessary for the manufacture of Products ("Inventory") covered by such Blanket Purchase Orders. See Addendum A
Material Procurement. The Trade Contractor will order and procure materials as required to maintain the Project schedule. If alternate materials are requested by the Authority or Team, Trade Contractor will advise of any alleged time impacts.
Material Procurement. 13.1 Material procured by the customer, regardless of its type, shall be delivered to us free domicile in perfect condition. Receipt shall be confirmed without assumption of warranty for the correctness of the quantity and quality designated as delivered. In the case of larger items, the costs associated with the payment or weight check and the storage expenses shall be reimbursed.
13.2 The client shall bear the risk of processing the material provided by him. We shall be entitled to reject material if it appears to us from the outset to be unsuitable for the execution of the order.
13.3 In the event of employment or loss of the material provided by the customer, we shall only be liable if we or our vicarious agents have acted with intent or gross negligence.
13.4 We do not assume any warranty for spice mixtures according to recipes provided by the customer with regard to their compatibility under food law.
Material Procurement. PO’s issued by SMC in conformance with this Agreement shall constitute authorization for ABLECOM to procure, using standard purchasing practices, the components, subassemblies, materials and supplies necessary for the manufacture of the Products covered by such PO. ABLECOM shall ensure that all procurement materials conform to the Specifications. All Products produced by ABLECOM must be in full compliance with pre-approved instructions, specifications, procedures, and ECOs.
Material Procurement. 1. In principle, Party B shall undertake the supplier development and management of the Products under its own responsibility, including the design and development of parts, commercial procurement, quality management, after-sales service, etc. In respect of the 3C and other key parts jointly determined by both parties, Party A and Party B will sign a tripartite purchase contract with the supplier in accordance with the requirements of Party A’s quality management system. The management content includes but is not limited to supplier qualification review, sample appraisal, small batch appraisal and PPAP review.
2. Party A and Party B jointly negotiate to determine the purchasing method of parts, accessories and other materials (hereinafter referred to as “Materials”) required for the production of the Products. Among them, Party A is responsible for purchasing certain Materials, Party A purchases certain Materials from Party B, and both parties jointly purchase key parts and 3C parts. The specific purchase list will be discussed and determined by both parties separately.
3. Party B warrants that the Materials provided to Party A meet the requirements of Party A’s quality inspection standards, comply with relevant national and industry standards, have manufacturer’s product identification and quality inspection certificate, and will be equipped with the “Three Guarantees” of Party B.
4. The specific matters concerning the purchase of Materials by Party A from Party B shall be agreed upon by both parties in a separate agreement on the purchase of the Materials for the Products.