Client furnished equipment, or sometimes called ‘buyer-furnished equipment’, refers to equipment which may be sourced and paid for by the client, and which is then incorporated into another party’s finished product assembly. For example, in the aerospace industry an airline purchasing a new craft, specifies to supplier A, that it wishes to purchase seats from supplier B, to be incorporated into the mainframe assembly that is coming from supplier A. The provision of client furnished equipment raises issues of risk and liability, and some procurement strategies would instead nominate supplier B as a sub-contractor to supplier A as an alternative, or leave the entire seat specification to supplier A, in order to simplify liability. See also EPIC.
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