I. Delivery Methods
Ex-Works (Factory Delivery / Pickup After Factory Acceptance)
The buyer arranges their own transportation and loading/unloading, while the seller is responsible for loading and packaging the steel components at the factory. This method is commonly used when components are manufactured in batches and ready for shipment. The contract typically stipulates that the buyer inspects the goods at the factory, and the risk of loss or damage transfers to the buyer upon successful factory acceptance. This approach places higher logistics responsibilities on the buyer but is the simplest option for the seller.
Delivery to Job Site (Destination Delivery)
The seller is responsible for transporting the steel structure products to the buyer’s designated construction site, covering all transportation and loading/unloading costs and risks. The buyer then organizes the acceptance inspection on-site. This method is suitable for projects with tight schedules and mature on-site lifting conditions, reducing the buyer’s logistics coordination workload.
Turnkey Delivery (EPC / Full-Contracting Model)
The seller handles the entire process, including design, manufacturing, transportation, on-site installation, and commissioning, until the project passes final acceptance and is handed over. This approach is common in EPC (Engineering, Procurement, and Construction)or "Design + Superstructure Installation / Full-Contracting"models, requiring the highest level of project management and on-site organization capability from the seller.
II. Payment Terms
Advance Payment (Down Payment)
After the contract is signed, an advance payment of X%of the contract value is made as material preparation/start-up funds, typically ranging from 20%–40%. For some projects, to secure material procurement, the advance payment may reach 40%.
Progress Payments (Phased Payments)
Material Arrival & Acceptance:Payment of X%upon delivery of materials to the site, after inspection and approval by the buyer and supervising engineer.
Main Steel Structure Arrival / Key Installation Milestones:Payment of X%when the main steel structure arrives or key installation milestones are completed.
Final Acceptance & Documentation:Payment up to 90%–97%of the contract value upon project completion, final acceptance, and submission of complete as-built documentation.
Retention Money (Warranty Deposit)
A retention of 3%–5%is withheld as a quality assurance deposit, which is refunded X working daysafter the warranty period expires, provided there are no defects. The warranty period typically lasts 12 monthsfrom the date of final acceptance.
Settlement Methods
Unit Price × Actual Quantity (Lump-Sum Settlement):Commonly used for component supply contracts, where payment is calculated based on the actual delivered quantity multiplied by the agreed unit price.
Monthly Progress / Milestone-Based Settlement:Used for EPC / Turnkey or Supply + Installation contracts, where payments are made based on monthly progress or predefined project milestones.
Small or Standardized Supply Contracts:Some smaller or standardized supply agreements follow a simplified settlement method, such as 90% payment upon monthly invoicing, with the remaining 10% settled within one month after project completion.
