| Contract Structure | Scope of supply | The contract should clearly define equipment, civil-work interfaces, utilities, automation systems, spare parts, documentation, and exclusions. | Request a complete equipment list, battery-limit drawing, responsibility matrix, interface schedule, and list of excluded items. | 8% |
| Payment terms | Payments should be linked to verifiable milestones rather than heavily front-loaded. A retention amount of approximately 5–10% is commonly used until final acceptance. | Review the payment schedule, advance-payment security, retention conditions, tax responsibilities, and consequences of delayed milestones. | 5% |
| Delivery schedule | The schedule should include engineering, procurement, manufacturing, shipping, installation, commissioning, performance testing, and defined delay remedies. | Ask for a detailed baseline program with milestone dates, critical-path activities, liquidated-damages provisions, and an approved change-control process. | 5% |
| Performance guarantees | Guarantees should cover measurable values such as production capacity, specific power consumption, fuel or heat consumption, product quality, emissions, and noise where applicable. | Check test methods, reference conditions, tolerances, sampling procedures, retesting rights, and remedies if guaranteed values are not achieved. | 7% |
| Warranty and liability | A clearly defined equipment warranty of approximately 12–24 months from commissioning or 18–24 months from shipment is commonly negotiated, subject to contract wording. | Verify warranty duration, covered components, exclusions, defect-response obligations, consequential-loss limits, insurance, and dispute-resolution procedures. | 5% |
| Installation Services | Site supervision | The supplier should provide qualified supervisors for mechanical, electrical, instrumentation, refractory, and commissioning activities as required by the project scope. | Request organization charts, role descriptions, personnel qualifications, site-duration assumptions, language capability, and replacement procedures. | 6% |
| Installation methodology | The method should address lifting plans, alignment tolerances, welding controls, electrical testing, lockout procedures, quality inspections, and commissioning readiness. | Review method statements, inspection and test plans, quality-control forms, safety plans, and the division of responsibilities between supplier and site contractor. | 6% |
| Commissioning support | Commissioning should include cold testing, hot testing, process stabilization, operator handover, performance testing, and punch-list closure. | Confirm the commissioning plan, start-up team size, minimum operating period, test acceptance criteria, reporting format, and support after initial operation. | 7% |
| Safety and compliance | The plant design and installation process should comply with applicable local laws and recognized international safety practices for machinery, electrical systems, dust, fire, and emissions. | Request risk assessments, safety certifications, equipment manuals, emergency procedures, dust-control data, and records of corrective actions from comparable projects. | 5% |
| Training and Handover | Operator training | Training should combine classroom instruction, equipment demonstrations, normal-operation practice, alarm response, start-up, shutdown, and emergency procedures. | Ask for a training matrix showing participants, subjects, duration, language, instructor qualifications, attendance records, and competency assessments. | 5% |
| Maintenance training | Maintenance personnel should be trained in preventive maintenance, lubrication, alignment, condition checks, instrumentation, electrical systems, and safe isolation. | Review maintenance curricula, recommended tools, inspection routes, calibration procedures, troubleshooting guides, and practical assessment methods. | 5% |
| Technical documentation | Handover documentation should include as-built drawings, manuals, spare-parts lists, software backups, instrument data, certificates, test reports, and maintenance schedules. | Request a document register with delivery dates, revision control, required formats, language requirements, and conditions for final acceptance. | 5% |
| Long-Term Maintenance | Spare-parts availability | Critical and long-lead spare parts should be identified before operation, with recommended stock levels and realistic manufacturing and shipping lead times. | Request a categorized spare-parts list covering start-up, two-year operation, wear parts, strategic components, prices, lead times, and storage requirements. | 6% |
| Technical response time | A practical service agreement should define remote-response targets, commonly within 4–24 hours for critical production issues and one business day for routine inquiries. | Check service-level agreements, escalation contacts, communication channels, holiday coverage, remote-diagnostics capability, and on-site mobilization terms. | 6% |
| Planned maintenance program | The supplier should provide preventive-maintenance intervals based on operating hours, equipment condition, process material, load, and manufacturer recommendations. | Review maintenance plans, inspection frequencies, shutdown requirements, lubrication schedules, condition-monitoring recommendations, and estimated annual costs. | 5% |
| Digital monitoring and diagnostics | Where appropriate, the solution should support trend monitoring for vibration, temperature, pressure, power consumption, production rate, and equipment alarms. | Verify system architecture, data ownership, cybersecurity controls, remote-access permissions, dashboard functions, alarm history, and integration with existing control systems. | 4% |
| Lifecycle cost transparency | The evaluation should consider total cost of ownership over a defined period, including energy, wear parts, labor, maintenance, downtime, upgrades, and disposal. | Request a five- to ten-year cost model with stated assumptions, energy-consumption basis, replacement intervals, labor requirements, and sensitivity analysis. | 5% |
| Supplier Due Diligence | Relevant project experience | Experience should be relevant to the required process capacity, raw materials, fuel type, product specification, climate, and regulatory environment. | Request anonymized project references, operating-period data, guaranteed-versus-actual performance records, and permission to contact plant operators. | 5% |
| Financial and organizational capability | The supplier should demonstrate sufficient engineering resources, manufacturing capacity, project-management capability, and financial stability for the contract duration. | Review audited financial information where available, organizational structure, subcontractor controls, production capacity, insurance coverage, and business-continuity plans. | 4% |
| Evaluation method | Use a documented weighted scorecard and compare technical compliance, commercial terms, lifecycle cost, schedule risk, service capability, and contractual protection. | Score each criterion from 1 to 5, record supporting evidence, apply the stated weight, and require written justification for any exception or deviation. | 6% |