Are Installation and Commissioning Included in Shipping?

The Core Principle

Shipping covers:

• ✔ Packing
• ✔ Export clearance
• ✔ Freight
• ✔ Insurance (if included)
• ✔ Port delivery (depending on Incoterms)

Installation & commissioning cover:

• ✔ On-site assembly
• ✔ Electrical connection
• ✔ Hydraulic setup
• ✔ Alignment
• ✔ Test production
• ✔ Operator training

They are different contractual scopes.

Why Buyers Get Confused

Many suppliers quote:

• “CIF price”
• or
• “DDP price”

This may include:

• ✔ Freight
• ✔ Insurance
• ✔ Duties (in some cases)

But it does not automatically include:

• ❌ Technician travel
• ❌ On-site installation
• ❌ Commissioning support
• ❌ Training
• ❌ Foundation preparation

Shipping ends at delivery. Commissioning starts at installation.

What Shipping Typically Includes

Depending on Incoterms:

EXW

Buyer handles everything after factory pickup.

FOB

Seller loads onto vessel. Buyer handles freight and beyond.

CIF

Seller covers freight and insurance to port.

DDP

Seller handles freight and import clearance to buyer’s site.

Even under DDP, commissioning is usually separate.

What Installation & Commissioning Usually Include

Installation normally covers:

• ✔ Machine positioning
• ✔ Leveling
• ✔ Anchoring
• ✔ Electrical connection
• ✔ Hydraulic filling
• ✔ Decoiler alignment

Commissioning normally covers:

• ✔ First material run
• ✔ Roll gap adjustment
• ✔ Encoder calibration
• ✔ Punch timing setup
• ✔ Shear timing setup
• ✔ Speed verification
• ✔ Profile accuracy confirmation

Training may also be included.

Why Commissioning Is Separate

Commissioning requires:

• ✔ Skilled technician
• ✔ Travel costs
• ✔ Accommodation
• ✔ Local electrical preparation
• ✔ Local compliance coordination

These are not part of freight services.

Typical Installation Cost Structure

Installation may involve:

• ✔ Daily technician rate
• ✔ Travel expenses
• ✔ Visa costs
• ✔ Local labor support
• ✔ Crane rental
• ✔ Forklift rental

These costs are usually quoted separately.

Remote Commissioning Option

Some suppliers offer:

• ✔ Video-guided installation
• ✔ Remote PLC support
• ✔ Online training
• ✔ Startup assistance

Lower cost but requires capable local technicians.

When Installation Might Be Included

Rare cases:

• ✔ Turnkey contracts
• ✔ Full EPC projects
• ✔ Large structural systems
• ✔ Contract explicitly states “installed and commissioned”

It must be clearly written in the contract.

Never assume inclusion.

Common Contract Mistake

The most common mistake is:

Assuming “Delivered to site” means “Installed and running.”

Delivery ≠ Commissioning.

How to Clarify Before Purchase

Your contract should clearly define:

• ✔ Scope of supply
• ✔ What is included in delivery
• ✔ Who handles installation
• ✔ Who handles commissioning
• ✔ Training duration
• ✔ Warranty start date

Commissioning date often triggers warranty start.

Financial Planning Impact

If installation is not included, you must budget:

• ✔ Technician travel
• ✔ Local electrical contractor
• ✔ Foundation preparation
• ✔ Crane & lifting
• ✔ Startup consumables

Installation cost can range from:

5–15% of machine value depending on complexity.

Final Expert Insight

Installation and commissioning are almost never included in shipping unless explicitly stated.

Shipping covers transportation.

Installation covers setup.

Commissioning ensures performance.

They are separate scopes and separate cost categories.

Always define responsibilities clearly in writing before placing deposit.