Can a Business FAI be signed electronically?

Yes. Electronic signatures are enforceable under the federal ESIGN Act (15 U.S.C. §7001) and UETA in most states, provided the signature demonstrates intent, consent, attribution, and the record can be retained and reproduced.

What makes an e-signed FAI legally binding?

A binding e-signed FAI must show signer intent, consent to transact electronically, clear attribution to the signer, and retainable records per the ESIGN Act (15 U.S.C. ch. 96) and applicable state UETA statutes.

Do I need notarization for an FAI?

Not typically for internal acceptance records; notarization is only required when a contract or local law demands an acknowledged affidavit. If needed, follow state notary rules or use RON where permitted.

How long should I keep completed FAIs?

Retain FAIs per contract and regulatory needs: generally at least three years after filing for tax-related records (IRC §6501(a)) and six years for HIPAA-related records (45 CFR §164.530(j)).

What if measured values exceed tolerances?

Document the deviation as a nonconformity, issue containment, propose corrective action, and record reinspection results before approving or releasing the lot.

How do I correct errors after signing?

Execute an amendment or corrected FAI with dated notes and approvals. For electronic records, produce a revised document with a clear audit trail showing who made changes and when.

Business FAI Document

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BUSINESS FAI DOCUMENT

This Business FAI Document (the Agreement) is made effective as of Effective Date: by and between Party A Name: with principal address , and Party B Name: with principal address .

RECITALS

WHEREAS, Party A is engaged in the design, manufacture, or supply of goods or services requiring a First Article Inspection (FAI) to verify conformity to agreed specifications and standards; and

WHEREAS, Party B requires verification and documented acceptance of initial production units, test reports, and corrective actions prior to full production or acceptance of Deliverables; and

WHEREAS, the parties desire to set forth the terms and conditions under which Party A will perform the FAI activities and Party B will accept or reject the results.

SCOPE OF WORK

Party A shall perform a First Article Inspection (FAI) for the following products, components, and processes. The FAI shall include measurement verification, material certification cross-checks, functional testing where required, photographic documentation, and a written FAI report identifying any nonconformances and corrective actions.

Detailed Scope (describe deliverables, acceptance criteria, sampling, and any special instructions):

PAYMENT TERMS

In consideration for the services and deliverables described herein, Party B shall pay Party A in accordance with the following terms.

Total Payment Amount: Payment Schedule and Milestones: Late Payment Fee:

If any undisputed amount is not paid within days of the invoice due date, Party B shall pay interest on the overdue amount at a rate of per month, or the maximum lawful rate if lower. Additionally, Party B is responsible for reasonable collection costs and attorneys' fees incurred by Party A in enforcing payment.

Invoice Address or Billing Instructions:

TERM AND TERMINATION

This Agreement commences on Start Date: and shall continue until End Date: unless earlier terminated in accordance with this section.

Either party may terminate this Agreement for convenience upon written notice to the other party not less than days prior to the effective termination date. Either party may terminate immediately for material breach if the breaching party fails to cure the breach within thirty (30) days after receipt of written notice specifying the breach. Termination does not relieve either party of obligations accrued prior to termination.

CONFIDENTIALITY

Each party (the Receiving Party) shall keep confidential and shall not disclose to any third party any proprietary or confidential information disclosed by the other party (the Disclosing Party) in connection with the FAI activities, including specifications, drawings, process data, test reports, and business terms. Confidential information excludes information that is (a) publicly available through no breach by the Receiving Party, (b) rightfully received from a third party without breach of an obligation of confidentiality, (c) independently developed by the Receiving Party, or (d) required to be disclosed by law or valid order of a court or government authority, provided the Receiving Party gives prompt written notice and cooperates in any protective measures.

The parties agree that the obligation of confidentiality shall survive termination of this Agreement for a period of unless otherwise agreed in writing.

Mutual Confidentiality Agreement:

ACCEPTANCE; NONCONFORMANCES

Party B shall review the FAI report and any associated test data within calendar days of receipt. If Party B identifies nonconforming items, Party A shall, at its expense, promptly propose and implement corrective actions and provide documentation of corrective measures. Acceptance of corrected items shall follow the same review process. Final acceptance shall be evidenced by a written Acceptance Certificate signed by Party B.

WARRANTIES; LIMITATION OF LIABILITY

Party A warrants that services provided under this Agreement will be performed in a competent and workmanlike manner and that Deliverables will conform to the agreed specifications for a period of from acceptance. Except as expressly set forth herein, all other warranties are disclaimed. Except for damages resulting from willful misconduct or gross negligence, neither party's liability for direct damages shall exceed the total amounts paid under this Agreement for the specific FAI activities giving rise to the claim.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles. The parties submit to the exclusive jurisdiction of the state and federal courts located in that state for disputes arising under this Agreement.

ENTIRE AGREEMENT

This Agreement, including any attachments, exhibits, or specifications expressly incorporated by reference, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous negotiations, proposals, and agreements, whether written or oral. Any modification or waiver must be in writing and signed by authorized representatives of both parties.

MISCELLANEOUS

If any provision of this Agreement is found unenforceable, the remaining provisions shall remain in full force and effect. Neither party may assign its rights or delegate its obligations under this Agreement without the prior written consent of the other party, except that either party may assign to an affiliate or in connection with a sale of substantially all of its assets.

Party A Printed Name:

By:

Date:

Party B Printed Name:

By:

Date:

What the Business FAI Document Is

The Business FAI Document (First Article Inspection) is a standardized technical record used to verify that an initial production sample or delivered item meets contract specifications, quality requirements, and buyer expectations. It captures dimensional measurements, test results, nonconformities, corrective actions, reference drawings, and approval signatures to create an auditable record. Organizations use the form to validate supplier readiness, support incoming inspection, and demonstrate traceability for quality systems such as ISO 9001 and customer audits.

Why this document matters for quality and compliance

A Business FAI Document centralizes inspection evidence, reduces rework by documenting deviations and corrective actions, and establishes an auditable acceptance trail for contracts, supplier management, and regulatory reviews.

Who typically prepares and reviews these forms

Personnel who prepare or review the Business FAI Document include quality engineers, inspectors, suppliers, procurement, and receiving departments.

Quality engineers and inspectors capture measurements, note nonconformities, and record approval signatures for first article items.
Suppliers complete the initial report to certify production readiness, attach test certificates, and document corrective actions.
Procurement and receiving use the report to approve shipments, manage supplier scorecards, and verify contractual acceptance.

Auditors, contract managers, and manufacturing engineers also reference the document to support dispute resolution and continuous improvement.

Core sections to include in a professional FAI

A complete Business FAI Document groups identification, measurement data, test evidence, nonconformity tracking, corrective actions, and formal approvals to provide a single source of truth for acceptance decisions.

Identification

Item/part numbers, revision level, drawing reference, purchase order, and lot/serial numbers to precisely identify the sample under inspection.

Measurements

Measured dimensions with tolerances, methods used, instruments, individual readings, and pass/fail status for each characteristic inspected.

Test Methods

Descriptions of test procedures, acceptance criteria, environmental conditions, and links to calibration or test reports supporting the results.

Nonconformities

Detailed descriptions of deviations, severity classification, photos or attachments, and immediate containment actions taken by supplier or inspector.

Corrective Actions

Root cause analysis, corrective action plan, owner, due dates, and verification steps showing how the issue was resolved or mitigated.

Signatures

Sign-off lines for supplier, inspector, quality lead, and buyer with printed name, title, date, and traceable signature method.

Step-by-step: completing a Business FAI Document

Follow these core steps to prepare, verify, and finalize the FAI for a clean acceptance record.

01

Prepare Sample: Identify and label the first article sample per purchase order requirements.
02

Record Data: Measure, test, and log each characteristic with supporting instrument IDs.
03

Document Deviations: List nonconformities, severity, and containment actions with evidence.
04

Obtain Approvals: Secure signatures from supplier, inspector, and buyer to finalize acceptance.

Configuring an online FAI workflow

Design a digital workflow that enforces required fields, attachments, and signer order to reduce manual errors and speed approvals.

Field	Configuration
Required Fields	Make part number, measurements, and signature blocks mandatory.
Conditional Logic	Show corrective action blocks only when nonconformity is flagged.
Signer Order	Route supplier → inspector → buyer in sequential order.
Notifications	Enable email and SMS reminders for pending approvals.

Technical considerations for eSubmission and integrations

Choose a platform that supports secure signatures, audit trails, and your required integrations for traceability and storage.

File Formats: PDF, DOCX, and images are commonly supported.
Integrations: Salesforce, NetSuite, Google Workspace, Microsoft 365 integrations reduce manual transfers.
Authentication: Email/SMS, KBA, and SSO options for signer verification.

Where to send or file the completed FAI

Routing depends on contract terms; typical destinations include supplier records, buyer quality folders, and centralized document control repositories.

Supplier Archive: Supplier retains the original FAI for traceability and corrective action follow-up.
Buyer Quality: Buyer quality team stores approved FAIs for acceptance and release decisions.
ERP/PLM: Attach the FAI to part master data in ERP or PLM systems.
Audit Folder: Keep a copy in the audit or corrective action management system.

Typical timelines and submission expectations

Contracts or purchase orders usually specify inspection windows and response deadlines; align the FAI schedule to those requirements to avoid shipment delays.

Inspection Window:

Commonly 7–30 days from delivery or production sample availability.

Corrective Action Due:

Suppliers often have 10–30 business days to propose corrective actions.

Approval Turnaround:

Buyers typically review and respond within 5–15 business days.

Record Filing:

Finalized FAIs should be filed within project document control timelines.

Reinspection:

Reinspection schedules depend on corrective action verification and contractual terms.

Key milestones in the FAI lifecycle

Track these sequential milestones from sample request to formal acceptance to manage progress and accountability.

01

Sample Requested

Customer or engineering requests first article sample for inspection.

02

Sample Received

Supplier logs receipt and assigns identification for the sample.

03

Inspection Completed

Measurements and tests are executed and recorded with evidence.

04

Acceptance Issued

Buyer issues formal acceptance or requests corrective actions.

Common pitfalls to avoid when preparing an FAI

Incomplete measurement data or missing instrument calibration IDs that undermine the acceptance decision and cause audit findings.
Using the wrong revision level or drawing reference, which can lead to acceptance against obsolete specifications.
Failing to attach test reports, photos, or material certificates that are required by contract or quality procedure.
Skipping formal sign-off or using initials without full printed names and dates, weakening traceability.

Consequences of an incorrect or incomplete FAI

Shipment Rejection: Delayed or returned shipments

Financial Loss: Costs from rework or warranty claims

Contract Breach: Loss of supplier standing

Audit Findings: Nonconformances recorded in quality audits

Regulatory Risk: Exposure for regulated products

Customer Dispute: Potential litigation or penalties

Representative eSignature vendor pricing and feature summary

Compare starting prices and core capabilities for common eSignature vendors; signNow is listed first per vendor comparison conventions.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Real-world examples of online document handling

These examples show how organizations use digital signing and routing to complete acceptance and compliance tasks.

Martin Properties (Tim Martin)

Tim Martin streamlined inspections and approvals online to avoid in-person signings.

He processed FAIs and related documents with full compliance.
He reported consistent, auditable records and the ability to execute documents on mobile or offline modes, improving turnaround and document control during property transactions.

BIS (Dan Rotelli)

BIS selected a secure signing platform to centralize acceptance records and audit trails.

The platform provided SOC 2 alignment and ESIGN/UETA compliance.
As a result, they felt more confident in vendor audits and internal controls while maintaining secure, tamper-evident records for inspection history.

Typical authorized signers and their roles

Quality Lead

The Quality Lead reviews measurement data, confirms acceptance criteria are met, and provides final sign-off. They coordinate corrective action verification and ensure the FAI links to related quality records for audits and supplier performance tracking.

Supplier Representative

The Supplier Representative completes the report, supplies test certificates, and certifies production readiness. Their signature attributes responsibility and triggers buyer inspection or release procedures according to contractual terms.

Essential data points to record on the FAI

Part Number: Exact OEM or buyer part number

Serial/Lot: Serial or lot identifier

Measurements: Measured values with units

Inspector: Name and title of inspector

Inspection Date: MM/DD/YYYY format

Approval Status: Pass, Fail, Conditional

Frequently asked questions about the Business FAI Document

Answers to common legal, technical, and procedural questions when preparing, signing, and retaining an FAI.

Need help? Contact support

Can a Business FAI be signed electronically?
Yes. Electronic signatures are enforceable under the federal ESIGN Act (15 U.S.C. §7001) and UETA in most states, provided the signature demonstrates intent, consent, attribution, and the record can be retained and reproduced.
What makes an e-signed FAI legally binding?
A binding e-signed FAI must show signer intent, consent to transact electronically, clear attribution to the signer, and retainable records per the ESIGN Act (15 U.S.C. ch. 96) and applicable state UETA statutes.
Do I need notarization for an FAI?
Not typically for internal acceptance records; notarization is only required when a contract or local law demands an acknowledged affidavit. If needed, follow state notary rules or use RON where permitted.
How long should I keep completed FAIs?
Retain FAIs per contract and regulatory needs: generally at least three years after filing for tax-related records (IRC §6501(a)) and six years for HIPAA-related records (45 CFR §164.530(j)).
What if measured values exceed tolerances?
Document the deviation as a nonconformity, issue containment, propose corrective action, and record reinspection results before approving or releasing the lot.
How do I correct errors after signing?
Execute an amendment or corrected FAI with dated notes and approvals. For electronic records, produce a revised document with a clear audit trail showing who made changes and when.

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