Quotr.ai Dictionary
Ex Works (EXW)
What is ex works (EXW)?
Ex works (EXW) is a shipping term in which the seller's only obligation is to make the goods available at their own premises — the buyer takes on all cost, risk, and responsibility for transport from that point, including loading, freight, insurance, and customs.
It is one of the Incoterms used in international trade and appears in construction whenever materials are sourced from overseas suppliers. EXW places the most responsibility on the buyer of any common term — the opposite end of the spectrum from delivered duty paid.
An EXW price looks low because it excludes nearly everything beyond the factory gate. Working out the true landed cost — freight, duties, handling — is essential before comparing it to a delivered quote, and normalizing those terms during buyout is the kind of procurement detail Quotr helps teams keep straight.
For developers sourcing materials directly, EXW can mean savings but also full logistics responsibility. For estimators, an EXW figure is only the starting point of the real cost.
Why it matters
An EXW price is not comparable to a delivered price until you add everything the buyer must cover. Treating it as final is how import budgets blow up.
Related Quotr links
Related terms
- FOB (free on board)
- unit price
- delivered duty paid