One goal of the IADD is to develop specifications, standards and best practices
which encourage quality and accuracy in all phases of the diecutting and diemaking
processes. On April 3, 2003, the IADD Board of Directors adopted the
following Best Practices as a guide to be used throughout the industry.
The below Generally Accepted Best Practices form a basis whereby effective
communications between a vendor and a customer can insure that all specifications,
information and conditions for placing an order and the delivery of that order
meet the expectations of both parties. These generally accepted Best Practices
create a win-win situation whereby all elements of the order process are recognized
and understood by both parties.
As a point of reference, these Best Practices reflect common business practices
in our industry. They can be used for companies to draft their own contractual
provisions, focusing on customer relationships and a competitive spirit
where all participants are able to advance their position in the industry.
It would be a good idea for you to research and discuss business practices
with your customer / vendor and develop ongoing language that everyone understands.
Use of these Best Practices is entirely voluntary. All terms are subject
to individual negotiation. Always consult your own attorney on contractual
language.
1. Quotations: Quotations for orders will be prepared based upon information,
specifications and conditions provided by the customer. It is incumbent upon
the customer to provide the supplier with all necessary specifications, information
and conditions required to prepare a quotation. Quotations or estimates, written
or verbal shall be valid for a specific period of time as specified by the supplier
company. Approval of a quotation by a customer to a vendor should be a valid
purchase order or an acceptance in writing in the form of a letter, fax or email.
2. Order Requirements: All verbal orders must be confirmed with written
instructions or a purchase order either by regular or express mail, fax or email.
Orders must contain all required specifications, tolerances, information and
conditions for the job. In the case of a customer ordering cutting die tooling
and associated products, the customer must inform the diemaker of the type of
material to be diecut and the cutting press that the die cutting tooling is
to used on. In the case of the diecutting converter, the customer must provide
the diecutting converter with the materials to be diecut or specify exactly
the materials that are to be used in the die cutting job so that the diecutting
converter can source the materials for the job.
3. Cancellations: Whenever a purchaser determines that it is necessary
to cancel an order, the purchaser must provide written notice to the vendor
either by mail, fax or email. A written notice must immediately follow a verbal
cancellation. The company canceling an order will be responsible for payment
of all work in process, expenses and materials purchased for the job up to the
point of cancellation.
4. Delayed completion of orders by a customer: If work on an order is delayed
during the normal production period of a job by changes in specifications or
other factors created by the customer, the vendor shall not be liable for adhering
to an original delivery date. The vendor company can, at its option; charge
the buyer for time lost in rescheduling production assets required for retooling
to complete the customer’s order.
5. Experimental work: Experimental work shall be defined as a vendor
designing and creating tooling or associated products for a customer for newly
developed products or processes to improve or modify a production process. It
is customary for the buyer to agree to honor the proprietary rights of the developing
company and not transfer proprietary information to a competing vendor company.
All experimental work or provided samples will be charged for based on a written
quotation or upon the cost of time and materials involved in the project as
agreed upon by the buyer and the seller.
6. Contingencies: All agreements are made and all orders accepted contingent
upon unusual delays caused by strikes, riots, fire, accidents or conditions
beyond the control of the vendor.
7. Change Orders/Alterations: Whenever a customer informs a supplier of
any change or alteration in the specifications of a job in production, the supplier
will advise the customer in writing of any additional costs involved and changes
in delivery time. The customer must approve any additional costs or delays in
delivery before the job can continue.
8. Overtime: All orders are accepted on the basis of performance during
normal business hours. If the customer demands work to be accomplished outside
of normal business hours, the vendor has the option to charge the customer premium
overtime rates to accomplish the work. All overtime work must be pre-approved
by the customer before the customer can be charged for the overtime work hours
in the project.
9. Handling and Shipping Charges: All costs involved in wrapping, packaging,
protection and crating of the product to insure safe delivery of the product
from the seller to the buyer, including delivery charges such as postage, common
carrier, or air freights, charges will be added to the invoice unless agreement
in advance has been made for the seller to absorb part or all such costs as
part of the job.
10. Inspecting tooling or products upon receipt of order: It is incumbent
upon the company receiving tooling and/or associated products to inspect those
products upon arrival and before the tooling is placed into production. If any
discrepancies or errors are found in specifications or tolerances based on the
original order or any pursuant change orders, the vendor is liable only to make
corrections to the tooling or provide replacement tooling. The vendor (cutting
die tooling provider) cannot be held responsible for materials diecut by the
converter if the buyer has not inspected the tooling or associated products
prior to being committed into a production situation.
11. Limitation of liability: In the case of the tooling provider, the
provider warrants that the tooling and associated products provided to the customer
meets or exceeds the specifications and tolerances as specified in the original
order or any pursuant change/alternations orders. This includes adhering to
the promised delivery dates unless both parties have mutually agreed upon new
delivery dates. The tooling provider will not accept liability for any die cut
parts or loss of machine time once the diecutting converter has placed the tooling
into production. As previously stated, it is the responsibility of the purchaser
to inspect the tooling for adherence to original specifications and tolerances
before the tooling is committed to a production situation. In the case of a
diecutting converter, all diecut parts will conform to customer’s specifications
as specified on the original order or any pursuant change/alteration orders.
Where the diecutting converter sources the materials to be diecut for the job,
the customer will pre-approve the materials being used in the diecutting job
prior to the actual diecutting operations.
12. Choice of shipping method: The buyer shall specify the method of
shipping for the order. For example: regular, priority or express mail, UPS,
FedEx, overnight express shipments, freight, messenger service, or a specific
common carrier. Responsibility ceases when the goods are signed for and conveyed
to the carrier. In cases that the purchaser does not specify a specific means
of delivery, the supplier will perform due diligence in selecting a form of
delivery to insure that the order arrives to the customers location in a reasonable
time period to meet the agreed delivery date on the order.
13. Errors or omissions: The seller will insure that all product specifications
and design information of the order will be in accordance to the original order
or any agreed upon change/modification orders. Upon receipt of the order by
the buyer and after inspection of the product, if any errors or omissions are
discovered, the seller will accept responsibility only to correct or replace
the tooling or product. The seller cannot be held responsible for any tooling
used in production or materials diecut in production that has not first been
inspected by the buyer upon receipt of the order to insure that all specifications
and tolerances are within the original specification.
14. Buyer’s Property: All customer supplied materials in the form of
drawings, artwork, film negatives, patterns, CAD files, samples, or any other
customer property provided to the vendor to be used in the design and manufacture
of the order will be returned to the customer upon completion of the order,
if requested. All above materials supplied to the vendor will be identified
with the customer’s name and job or model numbers for easy identification.
Otherwise, the materials will be maintained or disposed of by the seller at
the seller’s discretion. The seller will insure that all the customer’s
intellectual rights or designs of their property be protected in a confidential
and secure area from competitors’ eyes or knowledge. The CAD file belongs
to the person or company that created it. If the person who created it chooses
to sell or transfer the files, the third party should negotiate with the creating
party for ownership. The seller may not transfer CAD files or material, which
belongs to a customer to any third party without the written permission of the
customer. The vendor accepts no responsibility for loss or damage of the customer’s
property due to uncontrollable events such as fire, power spikes or brownouts,
earthquakes, rain or flood damage or other natural occurrences.
15. Seller’s property: All property in the form of drawings, artwork,
film negatives, patterns, CAD files, manufacturing files, samples created by
the seller in the course of designing or producing the products for the buyer
will remain the property of the seller. These properties can be used for the
generation of future orders or replacement tooling or products for the buyer.
16. Conflict Resolution: When a conflict or dispute arises in regards
to any part of the order process between a vendor and a supplier that cannot
be resolved in normal negotiations between the parties, the parties should agree
to seek counsel with a recognized arbitration organization such as the American
Arbitration Association or other recognized arbitration organizations and agree
to adhere to the decision for remedies of that organization.
This Best Practices Statement, developed by the International
Association of Diecutting and Diemaking, is provided as a management tool
for members of the diecutting converting industry.
The IADD expressly disclaims any warranties or guarantees, express or implied,
and shall not be liable for damages of any kind, in connection with the material,
information, or procedures set forth in this Statement or for reliance on
the contents of the Statement. In issuing this Statement, the IADD is not
engaged in rendering legal, accounting, or other professional services. If
such services are required, the services of a competent professional should
be sought.