What to keep in mind
Review production agreements, outsourced manufacturing, maintenance, materials, design ownership, guarantees and related-party transactions.
Interruption of a critical supplier can expose the manufacturer to downstream duties despite the absence of its own fault.
Distinctions often confused
Manufacturing, supply and maintenance arrangements have distinct risks and remedies.
Frequently asked questions
Should equipment acceptance tests be agreed?
Yes, with measurable standards, deadlines and responses to defects.
Can contracts transfer when a plant is sold?
Each assignment and applicable transfer-of-business regime must be assessed.
Informational content. It is not a substitute for professional advice.