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Project Terms: FAT, SAT and Handover

Published: Published on Zhilianhai

Terms

TermMeaning
Factory acceptance testTesting at the supplier before shipment
Site acceptance testTesting after installation on site
HandoverTransfer of documents, training and control
Punch listOutstanding items recorded at acceptance
RetentionMoney held back until conditions are met

Practical notes

  • Define the test procedure and pass criteria in the contract.
  • Do not let production start before the SAT is signed.
  • Close punch list items with owners and dates.

Acceptance terms are contractual. Confirm the definitions used in your agreement.

Information is provided for initial research. Verify specifications, pricing, policies and standards against the original source before making decisions.

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