Are Installation and Commissioning Included in Shipping?
They are different contractual scopes.
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.