Your eyes and hands in India · Est. 2019 · Replies within one working day

What a long-term agreement with a jewellery maker should include

A supply agreement should cover pricing and metal-price adjustments, quality standards, testing, design and mould ownership, confidentiality, capacity, payment, defects and how to end it.

· 5 min read · Creston & Co

A long-term agreement with a Rajkot jewellery maker should set out how prices are fixed and adjusted, the quality and compliance standards, who owns designs and moulds, confidentiality, capacity and lead times, payment terms, what happens with defects, and how either side can end the arrangement. Individual purchase orders then only need quantities, designs and dates.

The agreement does not have to be long. A few clear pages, signed by both sides, prevent most of the arguments that end supplier relationships.

Commercial terms

  • Prices per design, the period they are fixed for, and how they adjust when brass, copper or silver prices move beyond an agreed band.
  • Volume commitments or forecasts, and any price breaks linked to them.
  • Lead times for repeats and for new designs, and notice needed for peak seasons.
  • Payment terms: deposit, balance after inspection and payment method.
  • Incoterm, packing and labelling standards.

Quality and compliance

  • The specification standard for base metal, plating thickness, coatings, stones and findings.
  • Compliance with your markets' rules, such as nickel, lead and cadmium limits, with testing at an accredited lab and who pays for it.
  • A commitment not to change materials, plating units or sub-contractors without written approval.
  • Inspection rights, the AQL and defect classes used, and access to the workshop.
  • Counter-samples kept by both sides for each approved design.

Designs, moulds and confidentiality

  • Your designs, drawings and samples remain yours and may not be sold to others.
  • Moulds and dies you paid for belong to you, are stored and maintained by the maker, and are handed over on request.
  • Confidentiality of your designs, prices and customer information.
  • Any exclusivity: for example, that the maker will not sell your designs or close copies in your market.

When things go wrong

  • Defect, replacement and credit terms, with the reporting window.
  • What counts as a late delivery and what remedy follows, such as air freight at the maker's cost.
  • How disputes are handled: first by discussion, then mediation or arbitration under a named law and venue.
  • How either side can end the agreement, with notice, and what happens to stock, moulds and open orders.

Making it practical

Many Rajkot makers are small family businesses, and a heavy legal contract can put them off. Write the agreement in plain language, explain why each point matters, and agree it after a few successful orders rather than before the first. Back it up with how you behave: pay on time, forecast honestly and give feedback. For the order-level detail, see what a jewellery purchase order should include.

What this means for a buyer

Put the relationship on paper once it has proved itself, and review it each year. Creston & Co works for buyers only, for a fixed fee agreed in writing. We help you draft supply terms with Rajkot makers, keep counter-samples and moulds under control and check that each order meets the agreement. Ask for a free sourcing review.

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