Can the FAT be signed electronically?

Yes. Under the ESIGN Act (15 U.S.C. ch. 96) and UETA (adopted by most states), electronic signatures satisfy signature requirements for commercial acceptance documents unless a specific exception applies. Confirm contract terms and any state notary or witness requirements before relying solely on e-signatures.

What fields are essential in a FAT?

Include document identifier, equipment model and serial numbers, test scope, procedure references, raw measured results with units, deviation reports, corrective actions, inspector details, and dated signature blocks. Accurate instrument IDs and timestamps improve traceability and support warranty and dispute resolution.

Is notarization required for FAT?

Not usually. Most FAT records do not require notarization, but contract language or state-specific rules can mandate notarized acknowledgements or witness signatures. Check the contract and applicable state notary law; consider remote online notarization where permitted for convenience and stronger identity proofing.

How long must FAT records be retained?

Retain FAT documents for the contract term plus at least three years to satisfy IRS and commercial standards; longer retention (six to seven years) is advisable for warranty and dispute evidence. For device records containing PHI, follow HIPAA six-year retention rules.

What if test results show a failure?

Record the deviation in the FAT document, perform root-cause analysis, and document corrective actions with owners and estimated timelines. Do not sign off on acceptance until agreed corrective actions are complete or a conditional acceptance is recorded per contract terms.

Can signNow be used to execute FATs?

Yes; signNow supports legally-binding eSignatures under ESIGN and UETA, audit trails, HIPAA BAA, TLS/AES encryption, and integrations with common systems. Choose appropriate authentication and retention options; consult contract and state rules for notarization needs.

Business FAT Document

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Business FAT Document

This Business FAT Document (the "Agreement") is made effective as of by and between Client Name: with principal address , and Service Provider Name: with principal address .

WHEREAS

WHEREAS, Client requires a deliverable set of business FAT services, including planning, execution of tests, evaluation of outcomes, and documentation of final acceptance criteria; and

WHEREAS, Provider represents that it possesses the necessary expertise, personnel, facilities, and resources to perform Functional/Final Acceptance Testing, quality assurance, and related professional services in accordance with industry standards; and

WHEREAS, the parties wish to set forth the terms and conditions under which Provider will perform the services and Client will accept and pay for those services.

Scope of Work

Primary Scope Deliverables and Acceptance Criteria

Payment Terms

Client shall pay Provider a total fee of (the "Total Fee") for the services described herein. Payments shall be made in accordance with the schedule below.

Payment Schedule

All undisputed amounts not paid within days of invoice shall accrue interest at a rate of percent per month or the maximum rate permitted by law, whichever is lower.

Term and Termination

This Agreement shall commence on and shall continue in effect until unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure such breach within days after receipt of written notice specifying the breach. Either party may terminate for convenience upon days' prior written notice.

Confidentiality

"Confidential Information" means any non-public information disclosed by one party to the other, whether oral, written, or electronic, that is designated as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure. Provider and Client agree to hold Confidential Information in strict confidence, to use it solely to perform obligations under this Agreement, and not to disclose it to any third party except as required for performance or by law.

The obligations of confidentiality shall continue for a period of years from the date of disclosure, except that trade secrets shall remain protected for so long as they qualify as trade secrets under applicable law.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflict of laws principles. The parties submit to the exclusive jurisdiction of the state and federal courts located within that state for any dispute arising out of or relating to this Agreement.

Entire Agreement

This Agreement, including all schedules, statements of work, and exhibits expressly incorporated herein, constitutes the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous proposals, representations, negotiations, and agreements, whether written or oral. No amendment or modification of this Agreement is effective unless in writing and signed by authorized representatives of both parties.

Additional Terms

Insurance and Indemnity Notices

All notices, requests, consents, claims, demands, waivers and other communications hereunder must be in writing and addressed to the parties at their respective addresses set forth below (or to such other address that a party may specify in writing from time to time):

Client Notice Address Provider Notice Address

Client Name:

Provider Name:

By:

Date:

What the Business FAT Document Is and when it's used

The Business FAT Document (Factory Acceptance Test) is a formal record used to verify that equipment, systems, or software meet contractual specifications before shipment or final acceptance. It documents test procedures, pass/fail criteria, measured results, deviations, corrective actions, and signatory approvals from the vendor and the buyer. The document serves as traceable evidence of acceptance testing, supports warranty start dates, and can limit disputes by capturing agreed test conditions and outcomes. It is commonly used in manufacturing, industrial automation, and technical procurement workflows.

Why a clear FAT Document matters for contracts and warranties

A Business FAT Document clarifies acceptance criteria, reduces shipment disputes, and records technical compliance for warranties and invoicing. It provides a single, dated record of test results and approvals that stakeholders can rely on during commissioning and contract closeout.

Who prepares and signs a Business FAT Document

Typical users include procurement, engineering, quality assurance, and project managers overseeing equipment acceptance and commissioning activities.

Plant engineers and QA teams validating technical performance during acceptance tests.
Procurement and contracts staff confirming contractual requirements and sign-off authority.
Vendors and third-party inspectors documenting compliance and corrective action records.

Smaller suppliers and integrators also use the document to demonstrate readiness before shipment or to meet buyer audit requirements.

Essential sections to include in every Business FAT Document

Core sections of a professional Business FAT Document capture test scope, procedures, measurements, deviations, approvals, and signatures needed for contractual acceptance and audit records.

Test Scope

Describe equipment, model numbers, serial numbers, applicable standards, environmental conditions, and the acceptance criteria used to judge pass or fail for each test procedure and responsible personnel.

Test Procedures

List step-by-step procedures, instruments and calibration status, measurement points, data capture methods, and pass/fail thresholds so tests are repeatable and auditable by both parties and timestamped records.

Measured Results

Record raw measurements, averages, tolerances, unit labels, instrument IDs, and attach logs or CSV exports with clear linkage to test step numbers to support independent verification of results.

Deviations

Document nonconformances, root-cause analysis, temporary workarounds, corrective actions planned, responsible party, and expected resolution timeframe, including referenced photos, test traces, and authorization signatures.

Approvals

Provide signature blocks with printed name, title, company, date, and role (witness, inspector, buyer, vendor) and capture electronic audit trail metadata for each approval, including IP address.

Attachments

Include calibration certificates, instrument calibration dates, photos, video recordings, equipment manuals, software versions, and any factory witness sign-off documents required under the contract and linked file identifiers.

Step-by-step: prepare, run, record, and close a FAT

Follow this sequential checklist to prepare, execute, record, and close a Business FAT Document for each equipment shipment.

01

Prepare: Assemble specs, instruments, and calibrated tools.
02

Execute: Run procedures, record measurements, and log anomalies.
03

Review: Compare results to pass/fail criteria, note deviations.
04

Sign Off: Authorized representatives approve results and corrective actions.

How electronic submission and signing typically flows

Typical eSubmission workflow for a Business FAT Document moves from preparation to signing and archival with full metadata capture.

Upload: Attach PDF, DOCX, or Excel test reports.
Place Fields: Add signature, date, initials, and checkbox fields.
Authenticate: Use email, SMS code, or stronger methods.
Complete: Signed copy and audit trail exported.

Suggested eWorkflow settings for reliable FAT processing

Configure an electronic FAT workflow to ensure required fields, signer order, and retention settings are enforced for each test run.

Field	Configuration
Signer Order	Buyer then inspector then vendor sign in sequence.
Required Fields	Signature, date, instrument IDs, test results fields.
Retention Policy	Retain signed record and AV recording per policy.
Authentication	Email+SMS code; KBA optional for high risk.

Technical and integration needs for digitizing FATs

Use a platform compatible with PDF, DOCX, and Excel formats, offering audit trails, SSO, and common integrations.

File Formats: PDF, DOCX, XLSX supported.
Integrations: Salesforce, NetSuite, Google Workspace, Microsoft 365.
Security: TLS in transit, AES-256 at rest.

Required identifying information and short field checklist

Document ID: Unique number or version.

Manufacturer Details: Name, address, contact phone.

Equipment List: Model, serial, asset tag.

Test Dates: Enter as MM/DD/YYYY format.

Signatures: Signer name, title, date.

Audit Trail: Timestamps, IP, action log.

Key milestones from test planning to shipment release

Key milestones for a Business FAT Document track preparation, execution, review, and contractual closeout across procurement and shipping steps.

01

Preparation

Define scope, gather equipment, and schedule tests.

02

Onsite Testing

Execute procedures, record data, and capture media.

03

Review & Sign

Stakeholders verify results and sign acceptance certificate.

04

Closeout

Archive records, notify logistics for shipment release.

Typical deadlines and response windows for FAT workflows

Typical deadlines include scheduled test dates, sign-off windows, and dates that determine warranty and invoice milestones.

Schedule Test:

Confirm test date at least two weeks before execution.

Submit Report:

Provide signed FAT report within five business days.

Buyer Review:

Buyer to return comments or accept within ten business days.

Warranty Start:

Warranty effective date follows accepted FAT unless contract specifies otherwise.

Archival:

Ensure records archived per retention policy within 30 days.

Common risks and consequences of an incomplete or incorrect FAT

Shipment Delay: Failed tests delay delivery.

Acceptance Rejection: Buyer may refuse acceptance.

Warranty Start Issues: Warranty dates may not trigger.

Financial Penalties: Liquidated damages may apply.

Rework Costs: Vendor bears repair expenses.

Dispute Evidence: Incomplete records weaken claims.

eSignature vendor pricing and capability comparison for FAT document workflows

Compare typical eSignature pricing and core capabilities relevant to executing Business FAT Documents and managing signed records.

	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	Yes, 7-day trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

FAQs and troubleshooting for common FAT issues

Common questions about preparing, signing, and storing the Business FAT Document, with concise answers to reduce execution errors and legal exposure.

Need help? Contact support

Can the FAT be signed electronically?
Yes. Under the ESIGN Act (15 U.S.C. ch. 96) and UETA (adopted by most states), electronic signatures satisfy signature requirements for commercial acceptance documents unless a specific exception applies. Confirm contract terms and any state notary or witness requirements before relying solely on e-signatures.
What fields are essential in a FAT?
Include document identifier, equipment model and serial numbers, test scope, procedure references, raw measured results with units, deviation reports, corrective actions, inspector details, and dated signature blocks. Accurate instrument IDs and timestamps improve traceability and support warranty and dispute resolution.
Is notarization required for FAT?
Not usually. Most FAT records do not require notarization, but contract language or state-specific rules can mandate notarized acknowledgements or witness signatures. Check the contract and applicable state notary law; consider remote online notarization where permitted for convenience and stronger identity proofing.
How long must FAT records be retained?
Retain FAT documents for the contract term plus at least three years to satisfy IRS and commercial standards; longer retention (six to seven years) is advisable for warranty and dispute evidence. For device records containing PHI, follow HIPAA six-year retention rules.
What if test results show a failure?
Record the deviation in the FAT document, perform root-cause analysis, and document corrective actions with owners and estimated timelines. Do not sign off on acceptance until agreed corrective actions are complete or a conditional acceptance is recorded per contract terms.
Can signNow be used to execute FATs?
Yes; signNow supports legally-binding eSignatures under ESIGN and UETA, audit trails, HIPAA BAA, TLS/AES encryption, and integrations with common systems. Choose appropriate authentication and retention options; consult contract and state rules for notarization needs.

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