Hiro Capitals International – Equipments Supply Contracts

Equipment Supply

A supplier agreement governs the procurement of materials, products or services by your company from a third party for a pre-negotiated price and to be supplied in a certain timeframe. What should be included in a supplier agreement.

The following points should be included in a supplier agreement. Type of materials and products sourced Quantity, and quality of the goods/service Price and payment terms Confidentiality clauses Delivery time frame Procurement terms and conditions

Date: February 25, 2025
Client: Envato Group, US
Category: Manufacturing
Address: 2946 Angus Road, NY

Equipment Supply Contract

A supply contract is a formal agreement between purchasers and a contractor that outlines the terms and conditions for the procurement of a system or asset. It ensures a smooth implementation of the system within the project budget, schedule, and performance requirements.

The contract includes technical aspects such as the type of technology, system reliability, and resilience to technology evolution, as well as commercial aspects like price, lead time, and contractual terms. The contract is typically awarded through a competitive bidding process or, in some cases, through direct contracting after an informal negotiation.

System planning and deployment

Service supply management

Modeling long term contracts

Master Supply Agreement (MSA)

Types of supplier contracts

Are you planning to purchase new equipment for your business? If so, it’s important to have a solid procurement agreement in place. An equipment procurement agreement outlines the terms and conditions of the purchase, ensuring that both parties are on the same page.

But what exactly should be included in this type of contract? And how can you negotiate a deal that benefits your company? At Hiro Capitals, we’ll cover 5 key considerations for equipment procurement agreements and provide some expert tips on how to navigate these complex contracts.

1. Purchase Agreement

This is a standard agreement used for procuring goods or services from a supplier. It typically includes terms related to pricing, quantity, delivery schedules, quality standards, payment terms, and dispute resolution.

2. Master Supply Agreement (MSA)

An MSA establishes the overall terms and conditions that will govern future transactions between the parties. It covers aspects such as pricing, order placement, product specifications, warranties, intellectual property rights, confidentiality, termination, and other important provisions.

3. Service Level Agreement (SLA)

SLAs are commonly used when engaging suppliers for services rather than physical goods. They outline the specific services to be provided, performance metrics, response times, availability, penalties for non-compliance, and other key performance indicators.

4. Manufacturing Agreement

In cases where a company outsources its manufacturing to a supplier, a manufacturing agreement is employed. It covers details such as product specifications, production processes, quality control, pricing, delivery schedules, intellectual property rights, and confidentiality.

5. Distribution Agreement

A distribution agreement is used when a supplier grants another company the right to distribute its products in a particular region or market. It defines the roles and responsibilities of both parties, exclusivity or non-exclusivity of distribution rights, sales targets, marketing support, termination clauses, and more.