Factory Acceptance Test (FAT) — definition
Formal verification test conducted at the supplier's manufacturing facility to confirm equipment meets agreed specifications before shipment to site.
A factory acceptance test typically involves running the equipment under simulated or actual production conditions in the presence of buyer representatives, checking performance, safety functions and documentation against the contract specification. Successful completion is commonly a condition for releasing a payment milestone and authorising shipment.
Why it matters to industrial buyers
Identifying defects or deviations at the factory, before shipment, is generally far less costly and time-consuming than discovering them after the equipment has arrived on site.
Key reference points
Common triggers linked
FAT completion is frequently tied to a payment milestone and shipment authorisation.
Typical scope
Usually covers functional performance, safety interlocks, control system operation and documentation completeness.
Commonly confused with
Site Acceptance Test (SAT)
FAT verifies equipment performance at the supplier's factory before shipment; SAT verifies performance after installation at the buyer's site, under actual site conditions.
How it is used in practice
Buyer representatives travel to the supplier's facility to witness the factory acceptance test of a packaging machine before it is authorised for shipment.
Frequently asked questions
Is buyer attendance at FAT mandatory?
It is not always mandatory but is common practice for significant equipment purchases, and is often specified in the contract.
What happens if equipment fails the FAT?
The supplier typically corrects deficiencies and a re-test is conducted before shipment is authorised.
Procurement answers
Factory acceptance testing in the purchase contract
FAT is the last practical point at which a buyer can reject equipment before it becomes a site problem.
What should a buyer require for factory acceptance testing?
Require an agreed FAT protocol issued before manufacture completes, the product or material the test will run on, the throughput and quality criteria that constitute a pass, attendance rights, the punch-list process, and a payment milestone tied to a successful test. Without pre-agreed criteria, FAT becomes a demonstration rather than an acceptance gate.
What information is needed for an industrial RFQ?
A comparable RFQ states project location, the process or product being made, required capacity or throughput, technical and utility constraints, quality or certification requirements, delivery terms, installation and commissioning scope, target timeline, indicative budget band and whether financing is required. Without those fields, suppliers quote different scopes and the offers cannot be compared line by line.
Can suppliers be sourced internationally?
Yes. Requirements are matched across European, Asian, North American and regional manufacturers, with the shortlist shaped by delivery country, certification regime, service coverage and lead time rather than geography alone. Cross-border procurement adds customs, standards conformity, commissioning support and payment-security questions, so those are captured in the RFQ from the start.
Inspection, FAT and site acceptance terms are set out in the structured RFQ so every supplier prices the same obligations.
Continue on the platform
- quality assurance plan requirements
Inspection and test planning across the contract.
- how to write an industrial RFQ
Scope, standards, commercial terms and the fields that make bids comparable.
- industrial machinery categories
Equipment categories, industry clusters and geo markets.
Global B2B Group is supplier-neutral: we do not manufacture equipment or represent a single manufacturer. We are not a bank or lender — financing options may be explored with external financing partners, subject to eligibility, due diligence and lender approval.
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Related terms
Site Acceptance Test (SAT)
Formal verification test performed after equipment installation at the buyer's site, confirming it operates correctly under actual site conditions and integrations.
Commissioning
Systematic process of testing, adjusting and verifying that installed equipment and systems operate together as designed before handover to operations.
Payment Milestones
Predefined points in a contract at which agreed portions of payment become due, typically linked to design approval, manufacturing progress, shipment and acceptance.
Quality Assurance Plan (QAP)
Documented set of procedures, responsibilities, inspection points and acceptance criteria defining how quality will be verified throughout design, manufacture, installation and handover of industrial equipment.
Cycle Time
Cycle time is the elapsed time required for a machine or process step to complete one full repeatable operation, from the start of one unit to the start of the next.
Detailed Engineering
Detailed engineering is the project phase that converts basic design outputs into fully dimensioned drawings, control philosophy and component specifications ready for fabrication and procurement.
Lead Time
Elapsed time between order confirmation and delivery or readiness of equipment for shipment, encompassing engineering, manufacturing, testing and logistics.
Letter of Credit (LC)
Payment instrument issued by a bank on behalf of a buyer, guaranteeing payment to a seller upon presentation of specified documents that confirm contractual obligations have been met.
Machine Capability Study
Machine capability study is a statistical assessment of a machine's ability to consistently produce output within specified tolerances under short-term controlled conditions.
Machine Design Cycle
Machine design cycle describes the sequence of stages, from concept through basic design, detailed design, build, testing and handover, that a piece of custom equipment passes through.
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Reference content only. Global B2B Group is independent of equipment manufacturers and financing institutions; definitions are provided for education and do not constitute engineering, financial or legal advice.