Non-recurring engineering, or NRE, is a one-time charge for design, engineering, setup, programming, testing or qualification work needed before recurring production. It should be separated from unit pricing.
How Non-Recurring Engineering (NRE) works in a sourcing process
Ask for the deliverables, assumptions, hours or milestones behind the charge. Define which work product and intellectual property the buyer receives.
Non-Recurring Engineering (NRE): what the sourcing record should showAreaWhat to recordDecisionAsk for the deliverables, assumptions, hours or milestones behind the charge. Define which work product and intellectual property the buyer receives.EvidenceKeep the statement of work, deliverables, acceptance criteria, payment schedule, ownership terms and approved changes.Watch pointA one-time label does not guarantee the fee will never recur. State what future revisions, sites or products would create another charge.
What buyers should verify
Keep the statement of work, deliverables, acceptance criteria, payment schedule, ownership terms and approved changes.
A one-time label does not guarantee the fee will never recur. State what future revisions, sites or products would create another charge.
