Establishing secure connection…Loading editor…Preparing document…

Fabrication Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FABRICATION AGREEMENT

This Fabrication Agreement ("Agreement") is entered into as of by and between Client Name: and Fabricator Name: .

WHEREAS

WHEREAS, Client requires the fabrication of certain parts, assemblies, or structures described herein and requires a qualified fabricator to perform such work under the terms set forth in this Agreement; and

WHEREAS, Fabricator represents that it has the skill, personnel, facilities, and experience to furnish labor, materials and services necessary to fabricate, assemble, test, and deliver the finished goods in accordance with the specifications agreed by the parties; and

WHEREAS, the parties desire to set forth their respective obligations, payment terms, delivery, acceptance criteria, and the allocation of risk associated with the fabrication work.

1. SCOPE OF WORK

2. MATERIALS AND SUPPLY

Unless otherwise agreed in writing, Fabricator shall procure all materials required for performance of the Scope of Work. Client shall indicate below if Client will supply any materials:

Client will supply materials: Yes

3. PAYMENT TERMS

Unpaid amounts shall bear interest at on the outstanding balance, compounded monthly, from the date due until paid. Fabricator may suspend performance if Client fails to cure payment default within days after written notice.

4. DELIVERY, ACCEPTANCE AND INSPECTION

Fabricator shall deliver finished goods to the delivery location specified by Client in writing. Delivery terms and responsibility of risk of loss:

Client shall have days from delivery to inspect and notify Fabricator of non-conforming goods. Absent timely notice, goods shall be deemed accepted.

5. WARRANTIES

Fabricator warrants that fabricated goods will materially conform to the agreed specifications and be free from defects in workmanship for a period of months from the date of acceptance. Fabricator's sole obligation under this warranty shall be, at Fabricator's option, repair or replacement of defective goods or refund of the portion of the purchase price attributable to such goods. This warranty does not apply to damage resulting from misuse, modification, improper installation, normal wear, or Client-supplied materials.

6. CHANGE ORDERS

Any change in scope, specifications, quantities, or schedule shall be documented by a written change order signed by both parties. Change orders shall set forth adjustments to price and schedule. No work outside the Scope of Work shall be chargeable to Client without an executed change order.

7. TERM AND TERMINATION

This Agreement shall commence on the Effective Date specified above and shall continue until completion of the Scope of Work, unless earlier terminated in accordance with this Section. Expected completion date:

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 written notice. In addition, Client may terminate for convenience upon days' prior written notice to Fabricator, in which event Client shall pay Fabricator for work performed, materials ordered, and reasonable demobilization costs as of the effective date of termination.

8. CONFIDENTIALITY

Each party shall keep confidential and shall not disclose to any third party any proprietary or confidential information disclosed by the other party in connection with this Agreement, including but not limited to drawings, specifications, pricing, and trade secrets, except to the extent necessary for performance, as required by law, or after such information becomes publicly available through no fault of the receiving party. Confidential information shall be used only for performance under this Agreement.

9. INTELLECTUAL PROPERTY

All intellectual property rights in Client-furnished designs, drawings, and specifications remain with Client. Fabricator shall not use such materials for any purpose other than performance of this Agreement. Unless otherwise agreed in writing, intellectual property developed solely by Fabricator in the course of fabrication shall be the property of Fabricator, subject to a non-exclusive license to Client to use such intellectual property in connection with the delivered goods.

10. INSURANCE AND INDEMNIFICATION

Fabricator shall maintain commercial general liability insurance, workers' compensation, and such other coverages as are customary for the industry. To the fullest extent permitted by law, Fabricator shall indemnify and hold harmless Client from and against claims, losses, liabilities, and expenses arising out of Fabricator's negligence or willful misconduct in connection with performance of the Scope of Work; Client shall indemnify Fabricator for claims arising from Client-supplied materials or Client's negligence.

11. LIMITATION OF LIABILITY

Except for liability arising from willful misconduct or gross negligence, neither party shall be liable to the other for consequential, incidental, special or punitive damages. The aggregate liability of either party for any claim relating to this Agreement shall not exceed the total amount paid by Client to Fabricator under this Agreement for the specific goods at issue.

12. FORCE MAJEURE

Neither party shall be liable for delay or failure to perform due to causes beyond its reasonable control, including but not limited to acts of God, fires, floods, strikes, pandemics, governmental actions, or supplier failures if such causes materially impair performance. The affected party shall promptly notify the other and use commercially reasonable efforts to resume performance.

13. 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 law principles.

14. ENTIRE AGREEMENT

This Agreement, including any attachments, specifications, and executed change orders, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, proposals, representations, or agreements, whether written or oral. No amendment shall be effective unless in writing and signed by authorized representatives of both parties.

15. NOTICES

Notices required or permitted by this Agreement shall be given in writing and delivered to the addresses above by hand, regular mail, or certified mail, return receipt requested, and shall be deemed given upon receipt.

16. SEVERABILITY

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect and the parties shall negotiate in good faith to replace any invalid or unenforceable provision with a valid provision that most closely approximates the parties' intent.

Client:

By:

Date:

Fabricator:

By:

Date:

Enter text✕

What a Fabrication Agreement Covers

A Fabrication Agreement is a written contract that sets the terms for producing, assembling, or manufacturing custom goods or components for a client. It defines scope of work, specifications, materials, timelines, pricing, payment terms, quality standards, inspection and acceptance procedures, intellectual property, warranties, and remedies for defects or delays. Parties use this agreement to allocate risk, establish delivery milestones, and document responsibilities for design changes, subcontracting, shipping, and storage. Clear terms reduce disputes and create an enforceable record of performance expectations between fabricator and purchaser.

Why a Formal Fabrication Agreement Matters

A written Fabrication Agreement clarifies technical requirements, pricing, delivery timing, and quality acceptance criteria to reduce disputes and enable predictable project execution.

Why a Formal Fabrication Agreement Matters

Typical Parties and Stakeholders

Use the agreement to set acceptance tests, liability limits, and change-order procedures so responsibilities and costs are clear if plans change.

  • Fabricators and manufacturers delivering custom parts or assemblies for commercial projects and product lines.
  • General contractors, project owners, and procurement teams who commission goods for construction or installation.
  • Design firms and OEMs specifying tolerances, materials, and acceptance tests for manufactured components.

Core Sections to Include in a Professional Agreement

A robust Fabrication Agreement groups legal and technical terms into discrete sections that make obligations and remedies easy to find and enforce.

Scope of Work

Precise description of goods, drawings, specifications, tolerances, and any referenced standards to avoid ambiguity during production and inspection.

Pricing & Payment

Unit prices, lump sum or time-and-materials structure, deposit schedule, progress payments, final payment conditions, and interest on late payments.

Delivery & Logistics

Delivery schedule, shipping terms (Incoterms or carrier), risk of loss transfer, storage responsibilities, and penalties for late delivery.

Inspection & Acceptance

Inspection window, acceptance tests, notice of rejection procedures, rework obligations, and remedies for nonconforming goods.

Warranties & Remedies

Express warranty language, duration, remedies for breach, limitations of liability, indemnities, and exclusions to allocate defect risk.

Change Orders

Formal change-order process including scope change approval, time and price adjustments, documentation, and signature requirements for modifications.

Step-by-Step: Completing the Fabrication Agreement

Follow this sequence to assemble, review, and finalize the agreement so production can proceed without delay.

  • 01
    Prepare Documents: Collect drawings, BOMs, and spec sheets for attachment.
  • 02
    Define Scope: Describe deliverables, tolerances, and acceptance criteria.
  • 03
    Set Prices and Terms: Insert pricing, payment schedule, and late fees.
  • 04
    Sign and Distribute: Obtain authorized signatures and share executed copies.

How to Configure Online Workflows for This Agreement

When using an e-signature platform, configure fields and routing to reflect the agreement's approval order and required attachments.

Field | Configuration Purpose | Example values
Signature Order Set sequential or parallel signing as required by contract.
Conditional Fields Show cost or shipping fields only if checkbox selected.
Authentication Require email verification, SMS code, or stronger ID checks.
Expiration Set signing link expiry to limit unauthorized acceptance.

Where to Send and How eSubmission Works

Routing signed agreements to the right recipients and systems preserves chain-of-custody and speeds downstream processes like invoicing and production kickoff.

  • Upload Document: Add the agreement and all referenced exhibits to the platform.
  • Place Fields: Add signature, date, and attachment request fields where needed.
  • Add Signers: Enter signer emails and set signing order or permissions.
  • Send & Track: Send invites and monitor completion and audit trail.

Technical and Platform Considerations for eSubmission

Ensure the provider offers audit trails, secure storage, and retention controls that meet contractual and regulatory obligations.

  • File Formats: PDF and DOCX supported.
  • Integrations: Connect to ERP, CRM, or cloud storage.
  • Authentication: Email, SMS, or advanced methods available.

Key Project Milestones and Acceptance Stages

Map contractual milestones to procurement and production calendars so acceptance tests and payments align with physical delivery.

01

Kickoff Meeting

Validate drawings and schedule before fabrication begins.

02

Fabrication Start

Begin production per approved release documents.

03

Quality Inspection

Conduct inspections and document nonconformances.

04

Delivery & Acceptance

Perform final acceptance testing and release payment.

Typical Contract Dates and Deadlines to Track

Track critical dates so obligations such as delivery, inspection, and warranty periods are met and payment triggers occur on time.

Effective Date:

Start point for timelines and warranty calculations.

Milestone Delivery Dates:

Specific calendar dates for stages and partial deliveries.

Inspection Window:

Period allowed for buyer to inspect goods after delivery.

Warranty Start Date:

Date warranty begins, often upon acceptance.

Final Payment Due:

Date when retention or final invoice must be paid.

Common Mistakes to Avoid When Preparing This Agreement

  • Using vague specifications or unspecified tolerances that lead to disagreement during inspection and costly rework.
  • Failing to define acceptance criteria or inspection procedures, which delays dispute resolution and final payment.
  • Omitting a clear change-order process, causing confusion and billing disputes when scope evolves during fabrication.
  • Neglecting to address intellectual property rights for custom tooling, drawings, or prototypes created during the project.

Consequences of an Incomplete or Incorrect Agreement

Unenforceable Terms: Contract ambiguity may void remedies
Payment Delays: Invoicing disputes can delay cash flow
Rework Costs: Buyer may reject nonconforming goods
Liability Exposure: Broad indemnities increase risk
Supply Chain Disruption: Missed deadlines affect downstream work
Regulatory Noncompliance: Certain goods may trigger safety rules

Security and Compliance Considerations for Agreement Data

Encryption: TLS 1.2/1.3; AES-256 at rest
Certifications: SOC 2 Type II; ISO 27001
Regulatory Support: ESIGN and UETA compliance
Healthcare BAA: HIPAA available with BAA
Audit Trail: Timestamps, IPs, action logs
Access Controls: SSO, role-based permissions

Comparing Pricing and Key Features Across eSignature Vendors

High-level pricing and feature differences for common eSignature providers. Confirm plan details with each vendor for your required features and integrations.

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 trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA) Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Real-World Examples of Fabrication Agreements in Use

These brief customer examples illustrate how organizations use electronic agreements to accelerate fabrication workflows and maintain compliance.

Optica Ventures — COO

Optica standardized templates to reduce turnaround time and ensure consistency in specifications

  • The interface simplified internal and external execution
  • As a result, their customers receive clearer spec packages, fewer clarification cycles, and faster production starts across multiple projects.

Martin Properties — Founder

A small developer processes fabrication contracts online for prefabricated components

  • Mobile signing enabled on-site approvals
  • This allowed field teams to approve shop drawings and release production without returning to the office, shortening the procurement cycle.

Practical Tips for Accurate and Efficient Completion

Adopt consistent templates, controlled attachments, and a single source of truth for drawings to reduce ambiguity and administrative friction.

Standardize Templates
Use a controlled template with mandatory fields and referenced exhibits so each agreement contains the same essential protections and approval workflow.
Attach Source Files
Include BOMs, CAD drawings, and revision numbers as appendices to avoid disputes over which version governs production.
Use Clear Acceptance Tests
Define pass/fail criteria and measurement methods for inspections to prevent subjective rejection and rework.
Log Change Orders
Capture all scope changes in signed change orders that adjust price and schedule to preserve cost recovery rights.

Frequently Asked Questions and Troubleshooting

Answers to common legal, technical, and process questions that arise when preparing or executing a Fabrication Agreement.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users