FOB (Free on Board)

FOB (free on board) is a shipping term that defines the exact point where ownership and risk for goods transfer from the seller to the buyer — and, with it, who pays for freight and insurance from that point forward.

In construction procurement, FOB terms matter whenever materials are shipped, especially imported items like windows, doors, or cabinetry. "FOB origin" means the buyer takes ownership at the seller's dock; "FOB destination" means the seller keeps it until delivery.

Reading FOB terms correctly tells a buyer what a quoted price actually includes and where their cost and liability begin. When you are comparing material quotes during buyout, normalizing for shipping terms is what makes the comparison fair — the kind of procurement detail Quotr helps teams keep straight.

For developers and contractors sourcing materials, FOB terms can swing the true landed cost significantly. For estimators, they are the difference between a quote that looks cheap and one that actually is.