LONG LEAD TIMES Clause Samples
The "Long Lead Times" clause defines how the parties will handle goods, materials, or components that require extended periods to procure or manufacture. Typically, this clause identifies specific items with unusually long delivery schedules and sets out procedures for ordering, payment, or risk allocation related to these items, such as requiring early purchase commitments or special cancellation terms. Its core function is to manage the risks and responsibilities associated with items that could delay a project or contract if not ordered well in advance, ensuring both parties are clear on timing and obligations.
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LONG LEAD TIMES. The Company will identify material with a lead time greater than ninety (90) days, for Product requirements identified on the 180 day forecast, and provide a list of such material to the Buyer on a monthly basis (within ten (10) days following receipt of the monthly updated purchase order and forecast). The Company will place orders for such long lead time material only upon the Buyer's approval and the Company will have no liability for delays in delivery occasioned by the Buyer's failure to approve within 10 working days of the request for approval. Upon approval of the Buyer for the Company to purchase long leadtime material the Buyer agrees that it shall be responsible for all costs associated with the long lead time material in the event such material is not used in accordance with the monthly purchase order and forecast upon which the order was placed.