Contract electronics solutions providers partner with third-party design and manufacturing service providers for various reasons. Sometimes the primary EMS provider working with the OEM customer does not have the needed technical scope or depth of expertise. It could also be because the primary EMS provider may not have a facility situated geographically to best serve the OEM’s needs. Limited capacity is another reason one EMS provider might use a third-party EMS provider. Using third-party providers can be beneficial for OEM customers and all EMS providers alike.
Sub-Contract Design Agreement
This EMS industry document informs both OEM customers and EMS providers how some third-party sub-contract design agreements can be structured. This document is written from the OEM customer’s perspective, knowing their EMS provider would or may be sourcing design services to a third party. The PDF is boiler-plate without specifics to any one type of OEM program seeking sourced design solutions. The document covers everything from independent sub-contractor status and indemnification, to assignment, escrow conditions, invoicing, intellectual property protection, and more between one EMS provider and their third-party EMS design sub-contractor.
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