What Investors Should Check in a Production Line Proposal

Is there a significant price difference between two offers for the same line? The reason is almost always the same: scope difference. The seemingly cheap offer turns expensive when deficiencies on the field are addressed. Here is a pre-signature checklist:

Technical Scope

1. Is there a detailed equipment list?

Request a list that specifies brand/model/capacity; it shouldn't be just one line saying "complete line."

2. Under what conditions is the capacity guaranteed?

What bottle size, what product for "2,000 bottles/hour"? Acceptance test (SAT) criteria must be documented.

3. Material declaration

Which surfaces are AISI 304, which are 316? Will a certificate be provided?

4. Automation details

What is the PLC brand, HMI language, number of recipes, is remote access available?

5. Who provides auxiliary installations?

Mark "by customer" for steam, air, water, electrical distribution; your actual budget is hidden in these lines.

Commercial Scope

6. Delivery terms (Incoterms)

There is as much difference in container freight between EXW and CIF.

7. Is installation and commissioning included?

Supervision or full assembly? Who covers the accommodation/transport of the team?

8. Training

How many days, how many operators, in which language?

9. Warranty conditions

Duration, scope (does it include electronics?), response time.

10. Spare parts

Is there a critical spare parts list and prices for the first year in the offer?

11. Payment plan

Payments based on stages (order/FAT/dispatch/commissioning) protect both parties.

12. Deadlines and delay clause

Production + shipment + installation should be written separately.

Golden Rule

Compare offers not by the price column but by the scope column. A low price with missing scope is the most expensive line of the project.

Example Scenario: How a "cheap" offer can turn expensive

Consider two offers; offer A is noticeably lower than B. When you place their scopes side by side, the table looks like this:

• Offer A is EXW (factory delivery): freight, insurance, and customs are your responsibility.
• In A, installation is noted as "supervision": installation labor, crane, and scaffolding are your responsibility.
• In A, the electrical distribution panel is marked "by customer."
• Training in A is 2 days, and in B it is 10 days; the difference manifests in performance in the first month.
• There is no spare parts list in A; express shipping costs will be incurred at the first failure.

When items are added, the two offers often equalize; in fact, A may even come out ahead. The difference is not in price but in who bears the risk.

What You Need to Prepare Before the Offer

A healthy offer begins with a healthy input. Provide the other party with the following:

• Product description and any sample/analysis values if available
• Target capacity (with unit) and shift plan
• Packaging samples or technical drawings
• Facility layout: m², ceiling height, door dimensions
• Existing infrastructure: electrical power, steam, water, air
• Target commissioning date

Offers obtained without providing this information cannot be compared; each manufacturer makes different assumptions.

Make Sure to Document in the Contract

Everything discussed during the offer phase should be converted into clauses in the contract:

• Capacity guarantee: which product, which packaging, how many pieces/hour under what conditions — and how it will be measured in SAT
• Deadlines: production, shipment, and commissioning with separate dates; with a reasonable delay compensation clause
• Training: number of days, scope, and language
• Warranty: duration, scope (distinguishing electronics/wearing parts), and response time for failures.

Undocumented commitments are forgotten obligations by the time the project ends.

Red Flags

Some signals indicate the risk behind a low price early on: having only general definitions instead of brand/model in the equipment list; responding with "yes, included" to every request without negotiation (scope was probably never read); avoiding FAT invitations; reluctance to share reference facilities or video/evidence; asking for most of the payment in advance. If a few of these are present together, regardless of how attractive the price is, a second technical review is essential. Remember: evaluating offers is also an engineering task, and the cost of the wrong machine is always greater than this.

How the Offer Process Really Progresses

A healthy offer process does not end with a single email; it is a maturing dialogue. A typical flow is four steps. (1) Information sharing: you communicate your product, capacity, packaging, and site information — the "what you need to prepare" list in this document is for this moment. (2) Preliminary assessment: the engineering side produces the capacity calculation, draft equipment list, and approximate investment range; this phase takes several days and most companies do it for free. (3) Technical clarification: sample evaluation, site visit or video call if necessary to close open points; the scope matrix is prepared at this stage. (4) Binding offer: a document ready for signature with a list at the brand/model level, deadlines, and payment plan. The total duration is several weeks depending on the project's complexity. An offer that says "all inclusive, we start tomorrow" in a single meeting deserves to have questions asked about which of these steps were skipped.

Method to Align Multiple Offers to a Common Basis

Offers from different manufacturers come with different assumptions; align them before comparison. A simple method: create your own scope matrix (equipment items + services + Incoterms + training + spare parts) and mark "included / excluded / unclear" next to each offer, then ask for clarifications in writing on the unclear items. After two rounds, you will have two or three truly comparable figures. This two-day task is the insurance for a decision worth hundreds of thousands of dollars.

Related Solutions

• To set up the capacity calculation correctly: How to calculate capacity in food production lines
• For the material question: Difference between AISI 304 and AISI 316
• Our pages on each line and machine are in line with this list under "What we will ask from you before the offer."

Frequently Asked Questions

What is FAT?

Factory Acceptance Test: it is the testing of the machine at the manufacturer's factory before shipment with your product/conditions. Request it.

What is SAT, and how does it differ from FAT?

Site Acceptance Test: it is the acceptance test conducted at your site and under real production conditions after installation. The capacity guarantee is verified mainly here; this should be documented in the contract with criteria.

Why is the validity period for offers important?

Steel and freight prices are variable; the offer validity period and price revision conditions should be documented so that your budget is protected until order day.

If you wish to compare your existing offers with this list, ProcessTürk engineers provide support with an independent scope assessment. You can also submit your current offer via "Get a Quick Offer."