What should I be looking for in the contract when purchasing equipment? Should I have a professional review my equipment purchase contract?
When entering into an equipment purchase contract, ensure that the equipment described in the contract is in fact the equipment you want to purchase. Check that equipment warranties and payment terms and conditions are clearly stated. Ensure that the responsibilities of both the buyer and seller are well described. When purchasing production equipment, determine whether the seller includes assembly and start-up in the purchase price. Also, verify any applicable hourly rates or other expenses. Lastly, identify the remedies to which you are entitled in the case of minor or major problems with the equipment.
We recommend calling upon a professional with extensive knowledge of the equipment you wish to purchase. In fact, you should obtain such professional advice from the very start of the project, rather than waiting until you are ready to sign an equipment purchase contract. BDC offers consulting services
in this area.