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What Does FOB Mean in Construction? In the realm of construction, the term FOB is frequently used and holds significant importance. FOB, an abbreviation for Free On Board, is a common shipping term that indicates the point at which the responsibility for goods transfers from the seller to the buyer. In the construction industry, FOB has a specific meaning and is used to determine which party is responsible for the transportation and delivery of materials, equipment, and supplies to a construction site. FOB in construction can be defined as the point at which the seller completes their delivery obligations, and the buyer assumes responsibility for the goods. This term is crucial in determining the cost and logistics associated with obtaining necessary materials for a construction project. Understanding the implications of FOB is essential for both contractors and suppliers to ensure a smooth and cost-effective construction process. When it comes to FOB in construction, there are two main variations: FOB Origin and FOB Destination. 1. FOB Origin: Under FOB Origin, the buyer assumes responsibility for the goods as soon as they leave the seller's premises. This means that the buyer is responsible for all transportation costs, risks, and any potential damages that may occur during transit. The seller's obligation is fulfilled when the goods are handed over to the

What does the term FOB stand for?

Free on Board

Free on Board (FOB) is a shipment term that defines the point in the supply chain when a buyer or seller assumes responsibility for the goods being transported. FOB terms like FOB Origin and FOB Destination help define ownership, risk, and transportation costs for both buyers and sellers.

What does FOB jobsite stand for?

That highlights a need to understand how this often-misused term is defined. First of all, FOB – or F.O.B. – stands for Free On Board. It is the point in the supply chain where the seller relinquishes ownership, and the buyer accepts ownership of products purchased in a specific transaction.

What is the full form of FOB in civil engineering?

Construction of Foot Over Bridge (FOB)

What does FOB mean in safety?

Free on Board, or FOB is an Incoterm, which means the seller is responsible for loading the purchased cargo onto the ship, and all costs associated. The point the goods are safe aboard the vessel, the risk transfers to the buyer, who assumes the responsibility of the remainder of the transport.

What is an example of a FOB?

For example, if a buyer in Vancouver buys basketball shoes from a seller in Chengdu, China, he must pay for the transport costs from the seller's warehouse to the port, cost of loading goods onto a ship, and all transport costs from the shipping port to his warehouse/store.

What is the meaning of FOB in construction?

FOB stands for “free on board” or “freight on board” and is a designation used to indicate when liability and the responsibility of transporting goods are either on the seller or the buyer.

Frequently Asked Questions

What is the full form of FOB in engineering?

Foot Over Bridge (FOB)

In terms of electrical construction what does fob mean

F.O.B. Destination means goods are to be delivered to the destination designated by the user which is the point at which the user accepts ownership or title of 

How do you use FOB in a contract?

In an FOB shipping point agreement, ownership is transferred from the seller to the buyer once goods have been delivered to the point of origin. Once at this shipping point, the buyer is the owner of the goods and at risk during transit. Alternatively, FOB destination places the burden of delivery on the seller.

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