Acceptance Testing

Acceptance testing is the formal set of tests a buyer runs — or requires the vendor to run and document — to confirm that goods, software or constructed work meet the contract's requirements, before the buyer formally accepts the deliverable and releases the payment tied to acceptance.

What it is

In the federal supply vocabulary archived on CanadaBuys, the Supply Manual glossary defines "Acceptance" as a deliberate and intentional agreement or consent to accept goods and services rated as acceptable, and separately as receipt by the consignee for a shipment. Acceptance testing is the mechanism that produces that rating: objective, criteria-based tests executed against the requirement, with the results recorded. On the contracting side, PSPC's Standard Acquisition Clauses and Conditions (SACC) Manual organizes the relevant templates and clauses under a dedicated section — "Delivery, Inspection and Acceptance" — which is where federal buyers draw the inspection and acceptance terms they insert into solicitations and contracts.

Factory acceptance testing vs site acceptance testing

Federal solicitations on CanadaBuys commonly distinguish two stages. Factory Acceptance Testing (FAT) happens at the supplier's facility before delivery: the system or equipment is demonstrated against the specification while still under the supplier's control. Site Acceptance Testing (SAT) happens after delivery and installation, at the buyer's premises, on the integrated configuration that will actually be used. The same deliverable can pass FAT and still fail SAT if integration, environment or interfaces differ from the factory conditions — which is why federal requirements often schedule both and hold back acceptance (and payment) until SAT completes.

What it means for vendors

Acceptance criteria are a deliverable: if the solicitation does not spell them out, ask for them before bidding, because you will be measured against whatever ends up in the contract. Plan for the cost and duration of tests — construction standard-form contracts such as CCDC 2 place the cost of any test or inspection designated in the contract on the contractor. Until the buyer accepts, you typically cannot invoice the milestone tied to acceptance, and rejection usually obliges you to correct and re-test at your own expense. Keep the test plans, procedures and signed results — they are the evidence that converts work performed into work accepted.

Common questions

Is acceptance testing the same as inspection?

No. Inspection checks conformance of the product or work as it is produced, usually against drawings and specifications. Acceptance testing is a gate at the end: it demonstrates performance against the requirement and is the basis on which the buyer formally accepts — or refuses — the deliverable.

Who does the testing?

It depends on the contract. The buyer may witness supplier-run tests, run the tests itself, or appoint a third party. Independent verification is common when the result triggers large payments — which is why acceptance testing often pairs with third-party inspection in public-sector contracts.

Related definitions

Third-party inspection · Substantial performance · CCDC documents