Scope of Work in GMP equipment supply contracts: the key to smooth project execution

Why do most equipment contract disputes stem from vague scope of work?

In projects providing equipment for pharmaceutical factories meeting GMP standards, most conflicts between investors and suppliers do not come from the quality of machinery, but from items that no one made clear from the beginning: who bears the cost of reinforcing the foundation? Who pulls the 3-phase power line? Who takes care of loading and unloading when trucks cannot enter the factory?

When these questions are only answered “when something happens”, both sides lose: the investor delays the production schedule, the supplier loses extra time and unplanned costs.

This article shares Dai Kien Quoc’s practical perspective after many years of deploying equipment at pharmaceutical, functional food and veterinary factories in Vietnam.

What is Scope of Work?

Scope of Work (SOW) — The scope of work is the part that clearly states: what the supplier will do, what the investor will prepare, and where the boundary between the two sides lies. A good SOW is not a document that “tricks” partners, but is a tool for both parties to see the same picture of the project.

6 items should be clearly defined in the SOW Scope of equipment supply: list of machines, accessories, and consumables according to the first batch; Technical specifications are attached to separate appendices — absolutely do not write in general terms “on demand”. Ground conditions: foundation, load, door size, ceiling height — who is responsible if the ground is not met? Auxiliary system (Utility): 3-phase electricity 380V, compressed air 0.6–0.8 MPa, RO/purified water — which party supplies it to where (specific connection point). Transportation and loading: delivery method, who bears the cost of towing, forklift, and bringing the machine to the installation location. Installation, adjustment and acceptance: IQ/OQ process, no-load and load test criteria, SAT acceptance milestones, deadlines for each milestone. Training and handover: number of people trained, duration, handover documents (operation and maintenance manuals, electrical diagrams, spare parts list). Actual benefits when SOW is clear Stable progress: acceptance milestones are determined from the beginning, not “waiting for each other” indefinitely. Few costs incurred: any item other than the SOW has a basis for transparent negotiation instead of controversy. Protect both sides: investors know what they are getting; the supplier knows what to deliver — this is the foundation of a long-term partnership. Compliant with GMP standards: IQ/OQ records and acceptance records are clearly an important part when the factory conducts inspection assessments. Checklist before signing the contract — perspective from the DKQ implementation team. Is there a list of equipment with attached specifications? Has the site been actually surveyed (size, load, entrance)? Have you determined the connection point for electricity – gas – water? Have the acceptance criteria for each stage been agreed upon? Have you finalized the payment method and milestones associated with each acceptance milestone?

Note: The above content is to share DKQ’s practical implementation experience, not legal advice. Specific terms should be reviewed with each party’s legal entity.

Dai Kien Quoc provides a complete package of pharmaceutical, functional food and veterinary production equipment: configuration consulting, import, installation, training and IQ/OQ acceptance documents. Contact DKQ (hotline/Zalo 0878.468.234) for support in contract structure and scope of work for your project.