4.2 – Production Contract

Production Contract Template

The “Production Contract” should contain complete confirmation of the following:

  • Product summary and specifications
  • Quality inspection will be carried out
  • Lab testing may be carried out
  • The products will be subject to lab testing (verify regulatory compliance)
  • Packaging requirements
  • Shipping Terms
  • Defect product maximum percentage rates
  • Required product regulations and standards
  • Lead times and delay penalties
  • Payment terms and conditions
  • Intellectual Property and Confidential clause

Having at least all of the above confirmed and agreed before the production begins will save you time and money once the manufacturer begins production.

The majority of quality issues are misunderstandings. Reputable suppliers generally want to work well with their customers and gain repeat and ongoing business. This is why a good rapport with your supplier is essential. It helps to get things done efficiently and also show your supplier that you are precise.

If problems arise you want to be able to clearly show that you did all you could to avoid it happening. This is done with the “Product Specifications” document from earlier which is crucial, now also you can use this document to ensure that you have done all you can should issues arise.

You may have other pre-requisites, if you do then be sure to add them to this document also.

Disclaimer: We provide as many resources, templates, documents and checklists as we possibly can to assist you in ensuring that you remain fully compliant. However this course acts only as guide and for informational purposes only. Ultimahub take no responsibility for any aspect of your chosen ventures including those of any third party that you choose to work with.