Site Acceptance Testing (SAT), Installation and Commissioning
Site Acceptance Testing verifies that the equipment performs to specification once installed on the buyer's site. It is the final payment milestone and the trigger point for the warranty period. This guide explains how SAT, installation and commissioning fit together and what to require in the contract.
What if the equipment fails SAT?
The supplier must remedy at their own cost. Final payment is withheld until SAT is passed. This is why the SAT criteria must be agreed in writing before signing the contract. For projects above USD 500,000 or for financed projects, yes. Banks typically release the final construction-loan tranche only against a signed third-party SAT report.
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These three are often merged in contracts, which causes disputes:
- Installation — physical assembly of the equipment on site.
- Commissioning — powering up, calibrating and running the equipment on real inputs.
- SAT — formal test that the commissioned equipment meets the contractual performance criteria.
What a professional SAT includes
The SAT protocol usually mirrors the FAT protocol, run on the buyer's site with the buyer's inputs. It confirms throughput, accuracy, energy use and integration with upstream/downstream equipment.
Site readiness — buyer obligations
The buyer must deliver the site to agreed readiness: civil works complete, three-phase power available, water and drainage connected, access for cranes. Late site readiness is one of the top causes of project delay and cost overrun.
Punch list and warranty start
SAT closes with a signed punch list of any outstanding items and their resolution dates. The warranty period starts on SAT sign-off, not on shipment.
Frequently asked questions
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