AMB Engineering Ltd

Terms and Conditions of Purchase

CP-001 Rev A

 Acceptance of AMB Engineering Ltd purchase orders confirms suppliers/ subcontractors compliance with this document


Please note printed copies of this document are uncontrolled




General Terms

1.0 Definitions

2.0 Formation of Contracts

3.0 Variation

4.0 Price

5.0 Passing of property and risk to the Buyer

6.0 Excess quantities

7.0 Law


Quality Terms and Conditions

8.0 Scope

9.0 Purpose

10.0 Related Documents

11.0 Approval Requirements

12.0 General Quality Requirements

13.0 Business Quality Improvement Objectives

14.0 Organisation

15.0 Purchase Order / Document Order Control

16.0 Procurement of Components

17.0 Control of Non-Conforming Material

18.0 Rejections after Delivery

19.0 Supplier Monitoring

20.0 Records & Archives

21.0 Certificate of Conformance

22.0 Preservation and Packaging

23.0 First Article Inspection (FAIR)

24.0 Right of Access

25.0 Business Continuity Planning

26.0 Change Control

27.0 Traceability

28.0 Special Process Requirements

29.0 Manufacturing & Process Control

30.0 Inspection Reports

31.0 Source Inspection

32.0 Concessions/Permits

33.0 Corrective Actions

34.0 Special Process Suppliers

35.0 Distribution


General Terms and Conditions


1.0 Definitions

1.1 The term “Buyer” shall mean the Company so named in the Purchase Order.

1.2 The term “Supplier” shall mean the person, Firm or Company to whom the Purchase Order is issued.

1.3 The word “Goods” includes all goods covered by the Purchase Order including proprietary items, raw materials, processed materials, fabricated items and services provided.

1.4 The term “Purchase Order” shall mean buyers purchase order which specifies that these Conditions apply to it.

1.5 The “Contract” shall mean the contract between the Buyer and the Supplier consisting of the Purchase Order. These conditions and any other documents (or part thereof) specified in the purchase order.

1.6 The term “Order” shall mean the Purchase Order/Contract as detailed in point’s 1.4 & 1.5.

1.7 The “Company” shall mean AMB Engineering Ltd (hereinafter referred to as AMB).

1.8 The terms “These Conditions” shall mean the Buyers standard Terms and Conditions of Purchase set out in this document including additional requirements specified on the face of the order.

2.0 Formation of Contracts

2.1 All contracts of purchase made by AMB shall be deemed to incorporate these Terms & Conditions. No written or printed terms inconsistent with these Conditions or additional thereto shall be binding upon the Company unless expressly accepted in writing by the Company’s representatives.

2.2 The Company shall not be liable in respect of any Orders or instructions other than those issued or confirmed on the Company’s official forms duly signed by the Company’s authorised representatives.

2.3 The Company will incur no obligation in respect of any order until the Company receives the written confirmation of the Supplier in the form of an acknowledgement of the order. If the Supplier should fail to provide such written confirmation, the Company shall have the option of either regarding the Order unconditionally accepted, or withdrawing the same by notice to the Supplier, in which case any costs incurred by the Supplier shall be for the Suppliers account. Acceptance of the Order constitutes a Contract between the Company and the Supplier.

3.0 Variation

3.1 This order when accepted by the Supplier constitutes the complete and final agreement between the Company and the Supplier. No variation, amendment or alternative understanding in any way purporting to modify the Contract shall be binding upon the Company unless made in writing and signed by the company’s authorised representative.

4.0 Price

4.1 The prices stated in the Order are fixed and firm unless otherwise stated.

5.0 Passing of property and risk to the Buyer

5.1 The property and risk in the Goods shall remain in Seller until they are delivered to the address specified in the Purchase Order

6.0 Excess Quantities

6.1 The Company accepts no liability for the acceptance of payment for Goods delivered in excess of quantities specified in the Purchase Order unless otherwise agreed and may return such goods to the Seller at no risk or expense to the Company.

7.0 Law

7.1 The application of the uniform laws on International Sales shall be governed by the Laws of England and any claim or dispute arising there from shall be subject to the jurisdiction of and determined by English Courts.


Quality Terms and Conditions


8.0 Scope

8.1 The following sections detail the requirements to be satisfied by suppliers to AMB Engineering Limited. AMB requires that each supplier must comply with the quality requirements set forth within this document and to maintain a Quality Management System that ensure materials, goods and services comply with all our specified requirements.

8.2 These contract requirements are additional to the details on our Purchase Order (which focus on product quantity, logistics, part descriptions, special references, etc.).



9.0 Purpose

9.1 To establish and confirm a supplier’s Quality Assurance requirement for AMB for organisations supplying materials, goods and services that have a direct impact on the specification and or performance of an AMB product.

10.0 Related Documents

The following documents are internal to AMB and may be available upon request:

Procedure                            Subject

Ref: QA-PR-07                     Purchasing/ Approval of Suppliers (for reference only)

Ref: QA-PR-10                     FAIR - First Article Inspection Report (for AMB’s use / completion)

Ref: QA-PR-12                     Non Conformance (for reference only)

11.0 Approval Requirements

11.1 Suppliers shall as the terms so require, supply, release and deliver all products in accordance with the Purchase Order and all requirements identified therein.

11.2 AMB require its suppliers to be certified against EN AS 9100 and or EN AS 9120 (current issue) when contracted for Aerospace / Defence work (this is an EN AS 9100 and or EN AS 9120 customer contract requirement). If a supplier’s business is not structured specifically for Aerospace / Defence contracts, then the supplier must be certified against ISO 9001 current issue as a minimum. If a test and or calibration laboratory, the supplier must be ISO 17025 accredited by UKAS.

11.3 Suppliers that do not comply with the above may be used by AMB, provided the supplier’s Quality Management System complies with the following requirements (QA-PR-07) and has been formally approved by AMB management. All certification awarded must be accredited by UKAS (or similar notified body under the mutual recognition agreement (MRA) for international accreditation – refer to EA – EC notified bodies).

11.4 All products shall be supplied strictly in accordance with the purchase order (and technical specification provided). The delivery of incomplete product / shortages is not permissible unless specified on the purchase order or by written authority of AMB.

11.5 When the supplier is manufacturing a product on behalf of AMB, the supplier may only use Special Process Suppliers who are AMB approved. A complete list of AMB approved Special Process Suppliers can be supplied on request.

11.6 Material Stockists / Distributors / Franchised Distributor shall hold as a minimum ISO9001: latest issue Certification. As a minimum, items shall only be procured directly from the manufacturer or approved distributor / franchised distributor.

Note: Documentation and data supplied with the purchased item shall ensure that full traceability of the purchased item is maintained, confirming that the purchased item conforms to specification and was actually produced by the designated manufacturer (objectively).

11.5 In the event that a supplier has its approval against AS9100, AS9120 and / or ISO 9001 removed the supplier must immediately inform AMB in writing stating reason / status of withdrawal.

12.0 General Quality Requirements

12.1 Enquiries concerning the content of this document and other referenced documents, or requests for additional copies should be referred to the purchasing representative responsible for the Purchase Order within AMB.

12.2 The requirements of this document and of AMB procedure QA-PR-07 ‘Purchasing’ will be used to provide both existing and potential suppliers with visibility of the current Quality & Standard requirements and expectations of AMB contracts.

12.3 It is the policy of AMB to manufacture and supply products and services, which result in, or contribute to, safe conditions for its customers and the end-users of such products and services. In furtherance of this policy, Suppliers shall establish controls and procedures that ensure that the attention necessary for the achievement of this objective is objectively provided throughout the production in support of their products.

12.4 Suppliers are required to comply in full with the contents of this document. If a supplier cannot comply with any portion of this document, then the supplier must advise AMB in writing. AMB will review the supplier request and advise the supplier of the results in writing. The supplier is responsible for keeping all related documentation on file at their facility. No deviation from this document is acceptable in advance of formal agreement to do so in writing from AMB. Such formal agreement must be retained by the supplier.

12.5 Verbal agreements are un-acceptable.

12.6 Suppliers shall maintain AMB specifications and other Standards at the latest issue and shall review the issue status of specifications on receipt of a Purchase Order and or at least once within a six month period (particularly for repeat contracts).



13.0 Business Quality Improvement Objectives

13.1 All suppliers are expected to have plans to achieve Business (Quality) improvements as part of their continuous improvement programme.

13.2 AMB is dedicated to continuous improvement in the quality and integrity of its services and to the satisfaction of its customer requirements and expectations. Suppliers’ contribution to this approach through the quality and reliability of their products and services is a prerequisite.

13.3 Each supplier shall demonstrate continuous improvement based on pro-active loss-prevention, root cause analysis and effective timely corrective action.

14.0 Organisation

14.1 Any change to the management representative responsible for Quality Management System and / or Inspection within the supplier’s organisation (or group ownership) shall be communicated to AMB. Changes to premises shall be notified sufficiently in advance to AMB.

15.0 Purchase Order / Documentation Issue Control

15.1 Purchase Order amendments shall be subject to review by AMB prior to acceptance. The review shall ensure that copies of all processes and specifications quoted within a Purchase Orders are available, and that, where a supplier is unable to carry out any operations, approved sub-contractors may be identified.

15.2 Where a supplier has more than one site, every site used to produce product for shipment direct to AMB must have AMB approval.

15.3 AMB shall be afforded the right of entry to verify at source and / or upon receipt that purchased product conforms in all respects to specified requirements. This action shall not absolve the supplier of the responsibility for the quality of the delivered product nor preclude its subsequent rejection should other quality issues arise at a later date / time.

15.4 Where the use of a sub-contractor is permitted, the identification and selection shall form a part of the initial contract review. Suppliers may consider / use a sub-contractor suitable given the following circumstances: The sub-contractor is currently approved by AMB.

15.5 Suppliers are responsible for ensuring the flow down of applicable sections of the AMB documentation reference numbers and related specifications to second tier suppliers

15.6 Suppliers must reference AMB documentation reference numbers on all Purchase Orders issued in support of activity for AMB (referring their suppliers to the AMB web-site for latest version documentation).

16.0 Procurement of Components

16.1 Failure of components can have major effects on airworthiness, safety, reliability, operational integrity – with related cost impact. All parts are therefore termed “controlled” and should be treated as such (bonding requirements may be appropriate and / or necessary).

16.2 To mitigate the possibility of the inadvertent user of counterfeit parts, the Seller may only purchase components and parts procured directly from the Original Equipment Manufacturers (OEMs) or through the OEMs' authorised distribution chain. If an Independent Distributor is used, the Seller must make available to AMB (if AMB so requests) OEM documentation that authenticates traceability of the components to that applicable OEM.

16.3 If the required items cannot be procured from these sources, use of product without appropriate traceability documentation from independent distributors (brokers) or other sources is not authorised unless first approved in writing by AMB.

NOTE: It is the supplier’s responsibility to check that any sub-contractor is correctly approved prior to use (objective evidence for audit purposes maybe required).

17.0 Control of Non-Conforming Material

17.1 The supplier shall have no discretionary power to deviate from the specification requirements as detailed with Purchase Order (and supporting documentation). Concessions will only be accepted on receipt from the Supplier of a full “root cause analysis” report detailing the issues and evidence of preventative action. Parts subject to concession must not be delivered to AMB until AMB approves a concession.

Note: Concessions are normally only issued to Suppliers when a product is non-conforming, and the non-conformance does not affect fit, form or functionality.

17.2 No rework shall be permitted on identified non-conforming product without written approval from AMB. Manufacturing records shall clearly record the operation and the results achieved, should re-working under a concession be approved.

17.3 Where the supplier has any reason to suspect non-conformance of any delivered product, then the supplier must immediately notify AMB.

17.4 Scrapped (or non-conforming) components must be physically damaged beyond repair prior to actual disposal (to prevent mixing with conforming product of the same / similar type / model). The AMB management representatives (or their customer) may require a report from the Supplier and / or witness by inspection and of process of damage and / or disposal.

18.0 Rejections after Delivery

18.1 The Supplier shall be notified of non-conforming supplies found after delivery. AMB will contact the supplier and issue a CAR, (Corrective Action Report), against the parts prior to return.

18.2 Following receipt of a CAR notification the Supplier shall take immediate containment action. The action shall include 100% inspection of all supplier stock or work in progress. This containment action shall be taken within 48 hours of notification from AMB. The supplier shall provide within 14 days results of an investigation into the root cause of the problem and provide corrective action to prevent recurrence. The findings, corrective action and effective date shall be reported to AMB.

19.0 Supplier Monitoring

19.1 All Suppliers shall monitor the quality and delivery performance of product delivered to AMB. In addition each supplier’s quality and delivery performance is continually monitored by AMB. A supplier whose performance does not achieve and maintain an acceptable level shall be formally notified of their supplier status and may be required to implement improvement actions accordingly. Failure to improve or respond positively to an AMB CAR will result in the withdrawal of supplier approval by AMB.

20.0 Records & Archives

20.1 All (Quality Management System) records held by Suppliers shall be legible and identifiable to the product involved. Records shall be stored and maintained in such a way that they are readily retrievable in facilities that provide a suitable environment to minimise deterioration or damage and to prevent loss. Records shall be available for evaluation by AMB until such time as AMB authorise disposal in writing.

20.2 Documentation and records applicable to AMB shall not be amended with correction fluid. A single linked line shall delete any revisions and/or correction of errors and will be accompanied by an initial and date.

20.3 Should a supplier cease trading with AMB, quality records shall still be maintained until disposal is authorised by AMB. If the supplier ceases trading completely, or is unable to maintain the records, AMB must be informed so that alternate arrangements can be made to store the records.

20.4 All records shall be retained by the Supplier for a period of 25 years unless otherwise agreed with AMB.  

21.0 Certificate of Conformance

21.1 A Certificate of Conformity (C of C), which shall include sufficient information to enable it to be correlated to the supplies and must accompany supplies submitted / provided to AMB. Certificates and supporting documentation will be identified by Purchase Order / Contract number and shall include the following information:

21.2 The Certificate shall include a statement of conformity individually signed by an authorised signatory of the Supplier and shall be as stated below or similar, subject to agreement by AMB

We (name of the supplier) hereby confirm that the whole of the supplies detailed hereon have been manufactured, inspected and tested and conform in all technical and integrity respects with the requirements of the contract order / specification.

(signed by: authorised * person from the Supplier)

Note: * The Supplier shall be able to demonstrate to the satisfaction of AMB that the nominated authorised signatory has controlled usage of the authority (with the technical competence demonstrated by qualification and experience supported by validated CV claims).

21.3 Where the Supplier utilises an automated system for generation and / or authorisation of certificates / records, then those systems shall be subject to robust management and security controls approved by AMB to protect the integrity of the certification process.

21.4 The Supplier shall ensure completion of all requirements of the purchase order prior to delivery including all processes. Deliveries of goods that do not fulfil the purchase order requirements will not be accepted. The Supplier is responsible for providing a C of C that confirms that the products, processes, and/or services furnished meet the requirements for lot, of each shipment, of the AMB Purchase Order. The C of C must have at a minimum the following:

a) Consignees name and address

b) Consignors name and address

c) Reference number and date of the certificate

d) Description and quantity of supplies

e) Related specification or drawing numbers and issue (as appropriate)

f) Identification marks and serial numbers (as appropriate)

g) Manufacturing lot no. or traceability reference (works order / batch number)

h) Any limitations/Shelf Life Expiry dates (as appropriate)

i) Signature(s) of ** approval (for inspection / release)

21.5 When the purchase order and / or applicable documents do not specify a method of packaging and preservation, it is the supplier’s responsibility to assure that product is preserved and packed using methods and materials that will assure that it is delivered damage free to AMB.

22.0 Preservation and Packaging

22.1 Electrostatic Sensitive Devices (ESD) must be preserved by the supplier using appropriate ESD packaging materials, and stored under conditions recommend by the manufacturer.

For all delivered parts the method of packaging must:

·         Prevent damage or deterioration in transit

·         Permit safe handling

·         Assure that all necessary warnings are completely visible

·         Assure the shipping address, supplier name, qty, and part number are visible.

·         Assure that the packing list, quality documents, and other important information is enclosed, or securely fastened.


23.0 First Article Inspection Report (FAIR)

23.1 When a FAIR is required with the goods to demonstrate compliance with all the procurement specifications detailed in the design package the following must apply: First Article Inspection Reports shall be in accordance with AS 9102 and or AMB procedure QA-PR-10.

23.2 A copy of the FAIR shall be supplied with the product unless otherwise stated. The supplier shall retain the FAIR as a quality record and they shall not be disposed of without the written permission of AMB. This shall not absolve the supplier of the responsibility for the quality of the delivered product nor preclude its subsequent rejection should other quality issues arise.

24.0 Right of access

24.1 Any person authorised by AMB, including the Customer or Regulatory Authority, shall not be unreasonably refused permission by the supplier to enter any works, warehouse or other premises under the supplier’s control for the purpose of surveillance or inspection of any tools or materials procured or used for the manufacture of the goods or process of manufacture on the completed goods themselves before dispatched to AMB or their customer.

25.0 Business Continuity Planning

25.1 AMB advises each supplier to have a written business continuity plan to cover disaster recovery and the responsibilities and actions to be taken in the event of an emergency that may affect deliveries to AMB that will bring the supplier on line in the shortest possible time.

26.0 Change Control

26.1 Uncontrolled change within the supply chain can cause deficiency escapes into AMB. It is crucial therefore that all change, no matter how trivial it may appear, is assessed for potential risk and then subject to mitigating actions and control.

Changes can occur in three ways

1) Change to the manufacturing location, either within a supplier or between suppliers.

2) Changes to Components.

3) Changes within the company’s stores department, Storage and dispatch method, including machines, people etc.


The control mechanism for these is as follows.

1) Changes to the manufacturing location shall be notified to AMB.

2) Changes in components shall be raised with the buyer responsible for the purchase order. The buyer shall take the appropriate action within AMB and inform the Customer. The supplier must not progress with any changes to the component without written agreement from AMB.

3) Changes within the Company’s stores department shall be controlled as follows:-

·         All changes to components storage location shall be subject to a documented risk review prior to being carried out.

·         Staff changes within the company’s stores department must be fully trained and supervised until level of competence is assessed and approved as competent.

·         Changes to the Stock control computer system, must be documented, risk assessed, audited and checked after changes for example, new operational software is introduced or updated.

All documentation relating to point 3 must be kept indefinitely and made available to AMB on request in writing with reasonable notice following a CAR with relation to supply quality problems.

27.0 Traceability

27.1 All parts shall be clearly traceable back to the original manufacturer of the parts. Where the supplier has purchased a component or assembly, they shall have a copy of the original manufacturer’s certificate of conformance.

27.2 All components and assemblies shall be traceable to the original material identification.

27.3 The traceability system must facilitate the rapid identification of any part delivered and suspected of being defective. Containment action must be implemented immediately to protect the customer from any defects found that affect quality of the product.

All records in relation to AMB must be kept indefinitely and shall be made available to AMB upon request

28.0 Special Process Requirements (Ref. section 34.0 of this document for requirements)

28.1 Any special process supplier must be AS9100 or ISO9001 approved or meet the requirements outlined in section 34.0 of this document. The supplier performing the special process must certify that all applicable requirements have been met.

29.0 Manufacturing & Process Control

29.1 Adequate, clean well-maintained facilities shall be provided to enable products to be consistently produced in accordance with the requirements of the AMB purchase order.

29.2 Suppliers shall establish a procedure detailing the general workmanship practices for the prevention of Foreign Object Debris.

29.3 Suppliers must not omit any part of any specification except when defined on the purchase order or covered by a non- conforming report authorised by AMB.

29.4 Suppliers providing Shelf life items shall ensure they are correctly labelled with shelf life expiry and suitably packaged. No shelf life items within 6 months of expiry will be accepted.

29.5 Suppliers are expected to establish procedures for identifying adequate statistical techniques for determining process capability of key characteristics, especially when these are identified on the documentation. Such techniques shall demonstrate management ownership and responsibility and be based on recognised industry models.

29.6 Where the supplier uses a sample inspection plan as a means of product acceptance, the plan shall be predicated on industry recognised models, statistically valid and shall preclude the acceptance of known non-conforming product. Documented procedures and records to demonstrate this shall be available.

29.7 All parts supplied to AMB shall be identified in accordance with the requirements of AMB. Suppliers shall maintain records to identify the materials used and the manufacturing and processing history of each batch of parts supplied to AMB. A lot number that enables all associated records to be retrieved shall identify each batch.

30.0 Inspection Reports

30.1 The supplier is required to maintain and provide upon request all inspection records. The records must be at a minimum based on an established/recognised sampling plan.

31.0 Source inspection

31.1 Source Inspection will be used by AMB to help develop a new supplier, or a supplier that is having quality issues. Source inspection at a supplier’s site will be imposed by a letter issued from AMB to the supplier. In the event AMB imposes source inspection, only AMB can remove or waive source inspection.

31.2 AMB will also use source inspectors to perform in process checks at a supplier, process audits at a supplier, or corrective action development, or follow up. AMB will select a UKAS and / or other approved inspector.

32.0 Concessions / Permits

32.1 If a supplier’s quality system discovers a non-conformance to the AMB Purchase Order, the supplier can submit a request for a concession to the Buyer.

The supplier can use the table below to determine when a concession is needed.



AMB Approval/Concession Required

*Rework the non-conformance prior to shipment


Scrap and re-place


**Request to use the product as is


**Request to repair the non-conformance



*Rework must return the part to full compliance and specification.

**Requests to use as is, or repair a non-conformance, must be processed using the suppliers own concession request form and signed by AMB.


Note: The supplier is not authorised to dispatch items requiring concession until they have been informed of the applicable Concession Number and the supplier has a copy of the approved concession. This Concession Number must appear on their Certificate of Conformity, each time a delivery is made from the batch that has been approved under Concession.


33.0 Corrective Actions

33.1 If AMB perform a supplier audit and finds a non-conformance a request for corrective action will be issued to the supplier. Corrective actions for issues found during an audit will be documented. Before an audit will be closed out all open audit CARs must be answered by the supplier and accepted by AMB.

34.0 Special Process Suppliers

34.1 AMB uses AS9100 or ISO 9001 approved special process suppliers. In addition to AS9100 & ISO 9001 approval, the special process supplier must demonstrate the ability to satisfy all applicable requirements. Failure to satisfy any requirement will prevent AMB from using that supplier. Coded welder status is required when requested.

34.2 AMB considers the following to be special processes:

·         Material heat / other treatments

·         Composite / polymer binding

·         Twin-pack resin / adhesives

·         Painting / power-coating

·         Non-destructive testing (NDT)

·         Anodizing / plating

·         Welding / soldering / brazing (all)


35. Distribution (appropriate access of this document)


·         AMB purchasing department

·         AMB quality department



·         All AMB suppliers, supplying against Defence / Aerospace and related contracts (as identified by AMB)

·         AMB Customers (on request)

·         Auditors from Certification Bodies (on request)

 (End of this document)

CP-001 Rev A