Appendix A – Subcontract Work

The content of these specifications refers to all subcontract work supplies, and Suppliers are required to comply with them, save for particular instructions given in writing by Laga in respect of specific orders.

21. Contractual documentation

Supply agreements are communicated by means of the Subcontract Work delivery note (DT); the Price List with the general conditions of purchase, setting out the commercial conditions, is also sent as an attachment. The price list shows a revision index and an update date; Laga will send the updated document after each amendment. It is the Supplier’s responsibility to verify that the document is filed in the latest available revision. Laga sends the Order to the Supplier, who remains responsible for the correct retention and filing of the document. The Order constitutes to all intents and purposes the supply contract; therefore, without written waiver by the Supplier, the order is deemed valid with no expiry date.

22. Product drawing or approved sample

22.1 Drawing: the product Drawing is the document sent by e-mail as an attachment to the delivery note in the latest available revision and sets out the technical and quality requirements of the items; it is deemed an integral part of the supply contract. It shall be the Supplier’s responsibility to verify that the drawing used is the latest available revision.

22.2 Sample: where, given the type of supply, it is more appropriate for Laga to use a sample, two will be produced: one kept by the Supplier and shown at Laga’s request for approval, verification or audit, and one kept by Laga. Such samples “indicate” the technical and quality requirements of the items and are deemed an integral part of the supply contract.

23. Delivery note (DT)

For subcontract work supplies, Laga issues a delivery note (DT) with a unique progressive number stating:

• material identification code and description
• revision index
• quantities (weight/quantity) of material transferred
• batch number
• processing stage

The same information must be shown on the DELIVERY NOTE issued by the Supplier, as it is needed to calculate the amounts due and to recognise what has been agreed. In addition to the above, Laga’s DT also states the references to the supply contracts (both general and specific to the Supplier).

24. Delivery of materials

In the case of subcontract processing supplies, the products to be processed and any tooling granted on loan for use are delivered to the Supplier together with the DT. For tooling granted on loan for use, Appendix B “Loan for Use Agreement” is sent. Laga may decide to have raw material delivered directly by the producer; in that case the Supplier must check the quantity, and the signature on the delivery documents attests to their accuracy — the signed documents must be sent to Laga on the same day. From that moment the Supplier is responsible for storage and handling, avoiding damage to materials and tooling. Any damaged tooling must be returned separately and listed on the DT with the wording “damaged”. Failure to return the tooling, or parts of it, results in a direct charge.

25. Identification

The identification documents placed on the containers of products transferred for subcontract work form an integral part of the supply; therefore damage to or loss of such documents is subject to a non-conformity and a charge. Where the processing entails splitting a single container of semi-finished products into several containers, the Supplier must reproduce the identification documents (photocopies) to be attached to the containers, informing Laga of what has been done.

26. Sampling

For each sampling the presence of Laga personnel is essential, as they alone are authorised to approve the sampling. Any costs must be stated in advance and authorised in writing by Laga; without written authorisation no charge may be made to Laga.

27. Production release

Production of the first batch may start only after release by Laga’s Technical Department. While awaiting release, any problems or difficulties encountered in sampling/production in meeting the defined quality standards, and any non-conformities relating to the tooling made available, must be communicated to Laga’s Technical Department. Laga’s Technical Department must be notified of any changes to processes, products or services, including changes concerning any sub-suppliers indirectly connected with Laga. For each amendment or revision Laga may carry out a new release before series production starts. All process, product or service Non-Conformities must be communicated to Laga’s Quality Department.

28. Right of access

Laga reserves the right of access, for itself and for its Customers, to the Supplier’s premises and to those of any sub-suppliers, in order to carry out surveillance activities, which will be exercised subject to prior notice.

This document is the continuation of the General Conditions of Purchase (DC013).

Laga: GENERAL CONDITIONS OF PURCHASE – Subcontract Work Appendix — document DC014 rev. 02