Shield Works Lion Mark
Phase 1, Engineering Validation

A Proposal for Scrappy

Next-generation hardware for Positive Carbon: the IoT unit that weighs and photographs every food-waste disposal in a commercial kitchen for cloud classification into itemised, costed waste data.

8 Weeks
USD 16,500
Provisional
01 — Background

Background

Positive Carbon Ltd is an Irish food waste intelligence company, founded approximately five years ago and funded to date at around EUR 3 million. Its platform measures, prices and reduces food waste in professional kitchens, where waste can reach a quarter of everything purchased. Clients typically see substantial reductions in food waste once the data is in front of them.

The company sells a system, not a device. Scrappy is the hardware that captures the data: a camera looking down into a kitchen waste bin, a weighing platform beneath it, and a cloud pipeline that identifies each item and records its weight as it is discarded. The device is leased rather than sold, so Positive Carbon owns and services every unit in the field. There are currently in the region of 120 units deployed across roughly 12 partner groups in Ireland, the United Kingdom and the DACH region.

The software, the data and the recognition model are the company's strength and are explicitly out of scope for this engagement. The hardware has not kept pace. In April 2026 a major enterprise evaluation praised the data granularity, the dashboard and the recognition quality in the strongest terms, and declined to award on hardware alone, describing the unit as an early stage prototype rather than a deployable enterprise product. The feedback was specific and fixable: no ramp and the scale sitting too high for safe bin handling, a standard bin not fitting the platform footprint, protruding fasteners that are hard to clean, a top section that is not water resistant, and a pole that wobbles. That feedback is the backbone of the next-generation requirements.

Positive Carbon is now seeking a single end to end partner to take the next-generation unit from its current design position through to finished, shippable product: mechanical and electrical design, DFM, tooling, PCBA and assembly, CE certification, production and quality assurance. Two things drew the company to us specifically: the British owned, IP-secure manufacturing model, and end to end assembly and manufacturing under one roof.

Our role in that is specific and worth stating at the outset. It is not to replace or improve the software platform that has already created the value in this business. It is to engineer the physical product so that the hardware matches the quality of the software it carries.

This proposal covers the first paid stage of that program, Phase 1, Engineering Validation, following the scoping call held on 24 July 2026 with Nick Cunningham, President and Founder. It has been prepared after a full review of the Product Requirements Document v1.1, the hardware partner brief, the engagement scope note, the enquiry thread and the call record.

02 — Preliminary Read

Our Preliminary Read on the Product

The Shield Works R&D team has reviewed the full document set. What follows is not the Phase 1 output. It is the position our engineering work starts from, set out here so the scope and the value of Phase 1 are clear before any commitment is made.

One point on how to read it. Identifying these questions is not the same as answering them. What Phase 1 does is convert the positions below into documented engineering recommendations, supported by supplier input, and a costed plan that can be funded in stages. That is the difference between knowing where the risk sits and having a product that can be deployed at scale.

The document set is unusually good. The PRD is a controlled requirements document with 41 logged engineering decisions, each traceable to a named owner and a piece of evidence, a field failure log drawn from live deployments rather than speculation, and an honest register of what remains open. It is well past the standard of brief we normally receive, and it makes this section possible. The findings below are offered in the same spirit.

2.1 Which document governs

The engagement scope note states that on technical content the PRD wins and on engagement scope the note wins. We have worked to that hierarchy. It matters because the original enquiry of 22 July predates the PRD, and 3 of its headline requirements have since been superseded, one has been clarified rather than changed, and the design status has moved. One further point of scoping departs from the PRD as well as the enquiry and is recorded at the foot of the table. We have scoped to the PRD throughout, and record the differences here so there is no ambiguity later.

RequirementAs stated in the enquiryAs scoped
Reference binEN 840-1 240 L wheelieEN 840 120 L wheelie as worst case, round Brute 2620 at approximately 75.7 L as the common case. One platform fits both, per decision DEC-07
Illumination1080p camera with integrated LEDNo on-device illumination. Fixed low-light colour sensor operating on ambient kitchen light, IR-cut filter retained, per DEC-30 and CAM-02
IngressIP66 and IP69K enclosureIP66 across the whole unit, IP69K at the base, per MECH-05 and DEC-06. A clarification of the enquiry rather than a change to it
VolumeApproximately 1,000 units in year one800 units per year, per DEC-25, with no hard injection tooling at that volume per MFG-01
Design statusDesign spec is lockedLargely locked. Eleven open items remain in section E2 of the PRD, and three decisions are recorded as open or in progress
Compliance markingCE and UKCA for the European Union and United Kingdom marketCE as the expected route for both the European Union and Great Britain. This is the one place where our scoping departs from the PRD as well as the enquiry, since CERT-01 and DEC-36 specify both marks. The reasoning is in section 2.5, and the position is confirmed in Phase 1 rather than relied on

One point of clarification on the LED, because the two things are easily conflated. The call record notes that the LED matrix needs to become a screen. That is the on-device display requirement, and we have scoped it. It is a separate matter from illumination, which the PRD deliberately deletes on the grounds that a light source over a deep bin creates hard shadows and hot spots and makes recognition worse. We agree with that reasoning and have not reintroduced a lamp.

2.2 The two central technical questions

Most of this product is well understood. Two questions dominate cost, performance and risk, they are connected, and neither is resolved in the current documentation. Phase 1 carries each as a dedicated engineering workstream.

The sealed envelope, and what has to happen inside it. The unit must dissipate in the region of 15 to 18 watts typically, and must stay within limits at the 25.5 watt ceiling that COMP-03 permits, inside a sealed stainless enclosure, in a hot kitchen, with passive cooling and no fan, while keeping a downward camera lens clear of grease aerosol and condensation film, and while carrying cellular antennas that have to work from inside a metal box in a basement. Four requirements pull against each other here. Sealing fights heat rejection. Heat rejection fights silence and the seal. A pressure equalisation vent is mandatory rather than optional, because a sealed metal box that heat cycles in a humid room will condense internally and the first surface it will condense on is the camera window, but that vent is also a deliberate hole in the ingress boundary. And a stainless head blocks radio, so the antennas need a non-metallic radome panel, which is another aperture in the same sealed, hygienic, premium surface. Two further apertures belong on the same list and are easily overlooked. The weighing deck has to move freely for the scale to work at all, so the base carries a mechanical discontinuity that cannot simply be welded shut. And the external antenna bulkhead required by COMP-06 is a blanked penetration on every unit, whether or not a given site uses it.

The PRD is candid that this is the largest open area, and the evidence currently offered for the thermal position is field experience across roughly 120 units. That evidence is real but it does not transfer, because the current unit is not sealed. Sealing the enclosure changes the thermal problem entirely. This needs a stated ambient envelope and a validated conductive path to the enclosure wall, not an assumption, and that path is sized against the sustained worst case rather than the typical figure, because a design that only holds at the typical load throttles at the ceiling.

There is a related mechanical problem inside the same workstream. The camera has to sit roughly 1.1 to 1.3 metres above the platform to clear the bin rim, and the unit has to ship flat in a single parcel. That means a sectioned pole. Sectioning the pole is precisely what produced the wobble the enterprise evaluation rejected. Making a demountable joint that is genuinely rigid, indexed against rotation, sealed, and able to carry power up and a digital signal down is not a catalogue part. In our assessment it is the highest technical risk item on the product and it needs prototyping and cycle testing rather than specification.

Stability is the part of that problem the document set does not address at all. MECH-03 requires no perceptible wobble and a head that holds its camera framing under normal knocks, and MECH-12 specifies passive levelling feet on a graded kitchen floor. Nowhere in the requirements is there an overturning criterion, a sliding criterion, a stated footprint, or a method for validating any of them. That gap matters, because a free-standing tower carrying a head at 1.1 to 1.3 m is a materially harder case than it appears, and it needs an overturning calculation before a footprint is fixed. On the mass estimate in section 2.3, a 28 kg unit on a 600 mm base resists overturning about its front edge with roughly 80 newton metres, so a horizontal push at 1.3 m of around 60 newtons, under 7 kg of force, is enough to begin lifting it. A loaded bin on the deck improves that considerably, which means the governing case is the empty unit with the bin wheeled away for emptying, and that is precisely when staff are moving around it.

There is a second and separate case at deck level. Pushing a bin that can weigh 100 kg up the ramp applies a horizontal force into the unit before much of the bin weight has transferred onto it, and on a wet kitchen floor the passive levelling feet of MECH-12 may not hold it. Sliding is as much of a failure as tipping and it is the more likely of the two. Both cases pull against MECH-04, because the cheapest source of stability is mass and the weight target asks for the opposite. That conflict is better named than discovered. The available resolutions are footprint and mass distribution, high friction feet that remain cleanable under MECH-11, and if neither is sufficient an optional floor or wall anchor as a documented site variant. We would flag that last option carefully, because anchoring into a client's building reintroduces the permission conversation that cellular-primary connectivity was chosen to avoid.

The weighing chain, which is the product's entire data claim. The commercial promise is audit defensible waste data, so accuracy is a hardware outcome. The current specification is lighter than the application warrants in five respects. Automatic taring corrects the zero point but does nothing for span or gain drift, so a cell can degrade silently over a lease. A single point load cell with a bin parked off centre, or mid roll up a ramp, is a moment loading problem rather than a simple weight. Load cells drift with temperature, and a kitchen is a temperature cycling environment. A bin liner change is not a bin change: liner weight varies by tens of grams against a 50 gram display division, which is the same order as the quantity being measured. And the specification does not say where the tower stands. If the pole foot lands on the weighing deck, the mass of the pole and head becomes permanent dead load, and a lean or a knock at head height is read as weight rather than rejected, because a sustained lean is not the transient that WEIGH-06 filters. The pole has to mount to the base chassis with the deck carried on the load cell alone, and any harness crossing that boundary has to be routed as a deliberate slack loop of negligible stiffness rather than left to the assembler. A harness pulled taut across a weighing boundary is a force shunt, and it is one of the most common ways a correctly specified scale is ruined in assembly.

None of that is a reason to change the architecture. It is a reason to engineer the chain deliberately, to specify a factory calibration process with traceability rather than a field step, and to define the settle window and transient rejection behaviour explicitly. Phase 1 establishes that specification and the end of line calibration station that enforces it. One consequence is worth stating early, because it reaches back into the base concept. An isolated deck and a washdown seal pull against each other, since a bonded perimeter skirt is watertight but stiff, and stiffness at that boundary is measurement error. The route washdown platform scales normally take is to abandon the perimeter seal, make the deck a fully welded sealed pan with the cell inside it, and allow the void beneath to wet and drain. That is a different base architecture from a deck, pan and skirt, and it changes both the fabrication and what the leak test is actually testing.

2.3 The weight target, the ramp and the parcel envelope

Requirement MECH-04 sets a maximum unit weight of 23 kg. It is worth being precise about what that number is, because two different limits are folded into it. Single person handling is a manual handling limit and it applies to the packed parcel rather than to the bare unit, so packaging comes out of the same allowance. Carrier single parcel limits vary by region and by carrier and should be confirmed against the carriers actually used. On our arithmetic the 23 kg figure is not achievable for a unit with an integrated ramp, and the gap is wider than a bare fabrication estimate suggests. It is better raised now than discovered in engineering.

The footprint has to be derived before the weight can be, and the document set does not state one. The enterprise feedback recorded in the PRD is that a standard bin, either an EN 840 wheelie or a round Brute, does not fit the current scale footprint, so the new platform is sized from the bin rather than measured off the current geometry. Working from MECH-07, the platform is sized by the EN 840 120 L wheelie, which is in the region of 505 mm wide by 560 mm deep, subject to confirmation of the actual make and model under open item 3 of section E2. Adding positional tolerance for an untrained user pushing a bin on, and edge clearance so the bin body does not overhang and load the deck edge, gives a deck of approximately 600 by 600 mm. That is the smallest defensible platform rather than a target, and it holds only if the wheel and lug contact points of the bin fall inside it while the wider body overhangs. The round Brute sits comfortably within the same deck. We have used 600 by 600 throughout below.

On published sheet weights for 304 stainless at that footprint, a 2 mm deck is 5.7 kg, a 1.5 mm base pan 4.3 kg, and a 1.5 mm skirt at 70 mm high 2.0 kg. The deck gauge is not easily reduced, because a loaded bin puts 60 to 80 kg through each wheel on a small contact patch and 1.5 mm material will dent locally under that. With a ramp at 5 to 7 kg, discussed below, that is a base weldment in the region of 18.7 kg. Adding the load cell and its mounting at around 2 kg, 4 levelling feet at 0.4 kg, a pole assembly at roughly 4 kg, a head with its enclosure and internals at around 3 kg, and harness, glands and fasteners at 0.5 kg gives a net unit of approximately 28.5 kg, or approximately 31 kg packed. The shortfall against a 23 kg packed allowance is therefore in the region of 8 kg.

The ramp is the swing item, its mass is set by the gradient, and the gradient is set by the deck height. MECH-08 requires a gentle one person gradient for a bin that can weigh 100 kg loaded. At a 70 mm deck height and a 1 in 10 gradient the ramp is 700 mm long, which in 2 mm stiffened stainless is close to 6.7 kg. At 1 in 8 it falls to around 4 kg, but the gradient is then no longer gentle, and 1.5 mm material unsupported over that span will deflect under a loaded bin. Any ramp weight that does not state the gradient it assumes is not a figure at all.

That exposes a conflict between three Must requirements which the document set does not reconcile. MECH-07 sizes the platform to the 120 L wheelie, MECH-02 and PKG-01 require the whole unit to pack into a parcel of approximately 600 by 600 by 300 mm, and MECH-08 requires a ramp long enough to be gentle. A 600 mm deck cannot enter a 600 mm parcel, and a 700 mm ramp cannot lie flat in it. The parcel envelope is therefore not a reference dimension with slack in it. It is the binding constraint on the platform, and one of the three requirements has to move. We would rather put that in front of you now than resolve it silently in engineering.

Deck height is the dimension that governs all of this and it is not specified anywhere in the document set. It sets the ramp length and therefore the ramp mass, it sets the package space available for the load cell and its mounting, and it is what MECH-09 is really asking about when it calls for a low platform with no high lip. Fixing it is a Phase 1 output, and every figure downstream of it is provisional until it is fixed.

There are good engineering answers and Phase 1 will land one. A ribbed or swaged deck in thinner material with local doubler plates only under the wheel tracks recovers 1.5 to 2 kg for a small forming cost. An open drained frame in place of a full base pan recovers 3 to 4 kg and improves drainage at the same time. Lowering the deck shortens the ramp and takes mass out of both at once. An aluminium ramp would remove around 4 kg, but it introduces a dissimilar metal joint in a washdown environment and a visible finish break against BRAND-02, so we would want to test that against the premium finish requirement before recommending it. Steel grade is not a lever here, since 316 is only around 1% heavier than 304. The decision that actually resolves this, though, is whether the ramp travels inside the parcel. Making it a separate detachable item takes 6 to 7 kg out of the shipped tower, simplifies the base weldment, and is consistent with the unbox order being the build order in ASSY-05. With an integrated ramp we do not believe 23 kg packed is reachable. With a detachable ramp it is close. That is the question we would put to you, rather than a request to relax the target.

2.4 The ingress target is worth confirming before it is designed to

The PRD names washdown survival as the critical quality bar and specifies IP66 across the unit with IP69K at the base. We agree completely on the priority. It is worth confirming the IP69K element specifically, because of what that test actually is.

IP69K is a close range, high pressure, high temperature test drawn from automotive and food processing machinery practice: water at approximately 80 degrees Celsius, delivered at 80 to 100 bar, at a distance of 100 to 150 millimetres. For enclosures over 250 millimetres the test is performed manually across the whole surface rather than on a rotating table, and the Scrappy assemblies are well over that threshold. Meeting it drives real cost into seal design, continuous rather than stitch welding, gland selection and, critically, 100% pressure decay testing on every unit in production, because an ingress claim of that grade cannot be established by sampling.

The question Phase 1 answers is whether the actual cleaning regime at the sites concerned requires it. If kitchen staff are directing a pressure washer at close range then IP69K at the base is the correct specification and we will engineer to it. If the real duty is hose down and spray at normal distances, IP66 across the unit with hygienic design to EN 1672-2 principles delivers the same practical outcome at materially lower cost and lower production test burden. We need the water temperature, the pressure, the chemicals in use and the working distance from the lead caterer to close this. It is recorded as an open item in the PRD itself.

One point regardless of the answer. IP69K is a type test, not a build standard. Passing once in a laboratory does not mean a thousand units hold it in the field. Whichever target is set, the production process needs a leak test that proves it unit by unit, and that is designed into the line rather than added to it. Two qualifications on how that test is defined. A pressure decay test demonstrates leak tightness against an acceptance limit, and the limit has to be correlated to the units that passed the type test rather than asserted on its own. And the pressure equalisation vent has to be plugged for the test to run at all, so the vent's own seal is verified as a separate operation rather than covered by the decay result.

2.5 Compliance route

The certification position is more favourable than it first appears, and one element of it is a genuine gap in the current plan. The summary below is the position in four lines, with the reasoning behind each set out underneath.

Compliance position at a glancePosition
CE markingThe expected route for both the European Union and Great Britain. Confirmed in Phase 1
UKCA markingNo separate test campaign currently expected. Worth confirming whether an enterprise buyer requires the mark commercially
Weighing regulationThe device sits outside legal for trade use and should stay there. Protecting that position is a commercial action, not an engineering one
CybersecurityNot currently in the product plan and now mandatory. Requirements and assessment route are in our scope and costed. Implementation and the ongoing obligations sit with Positive Carbon, per section 8

CE marking is currently recognised as a route for placing this product on the Great Britain market. Under the Product Safety and Metrology etc. (Amendment) Regulations 2024, in force from 1 October 2024, the United Kingdom recognises CE marking indefinitely across 21 product areas, including every regulation that bears on this device: electrical equipment safety, electromagnetic compatibility, radio equipment and RoHS. The same core technical evidence is therefore expected to support both the European Union and Great Britain routes, subject to confirmation of any Great Britain specific documentation, labelling and economic operator requirements, so a separate UKCA conformity assessment campaign is not presently expected. Two qualifications. Because Positive Carbon is established in Ireland, the Great Britain supply route will need to identify the Great Britain importer and confirm the associated labelling and compliance responsibilities. A UK authorised representative may also be appointed for specified functions, but whether one is required or commercially useful depends on the final route to market. And the Product Regulation and Metrology Act 2025, which received Royal Assent on 21 July 2025, is an enabling Act that gives ministers powers to alter the Great Britain product regulatory framework through secondary legislation, so this is a position to be confirmed at the point of placing on the market rather than treated as permanently settled. We will confirm it in Phase 1 rather than rely on it, and we would note that a UKCA mark may still be asked for by an enterprise buyer as a procurement condition rather than a legal one, which is a commercial question worth settling early.

The device is not a legal for trade instrument, and that must be protected. The Non-automatic Weighing Instruments Directive exempts instruments used for internal process control, goods inspection and customer information. Scrappy sits squarely in that exemption, so no conformity assessment, no M mark and no Measuring Instruments Directive obligation applies, and the PRD is correct on this point. The important qualification is that the trigger is the use, not the design. If a caterer ever bills a client from the reading, or a waste contractor charges by weight, or a rebate or penalty is calculated from it, the instrument moves into the regulated category and requires EU type examination plus verification of every unit. Given that the product exists to produce costed waste data, we recommend the intended use is stated explicitly in the customer contract and the user documentation.

Radio certification does not transfer automatically from the module. There is no modular approval concept under the Radio Equipment Directive. Integrating a pre-certified cellular module creates a new radio product, and the module certification does not carry across when antenna design or placement changes. Because the antennas sit inside a stainless head behind a bespoke radome, a reduced radio verification campaign is unavoidable. This is far cheaper than a full campaign but it is not zero, and it needs to be in the budget. The same campaign should carry the radio frequency exposure assessment under EN 62311, which is easily overlooked and applies here because the antennas sit at head height, where an operator stands to read the display.

Cybersecurity is a requirement that is not currently in the plan, and it sits across the scope boundary. Since 1 August 2025, radio equipment placed on the European Union market must meet the cybersecurity requirements under Article 3.3 of the Radio Equipment Directive, assessed against EN 18031, with no transition period. Where the standard is applied in full and no restricted provision is engaged, self assessment is available; where a restricted provision is engaged, a notified body becomes mandatory. Separately, reporting obligations under the Cyber Resilience Act begin on 11 September 2026, with the main obligations applying from 11 December 2027. The Act is a distinct track rather than an extension of EN 18031. Evidence produced for EN 18031 maps usefully onto it, but presumption of conformity under the Act will come only from its own harmonised standards, common specifications or a certification scheme once those are published, so the two should be planned as two pieces of work with shared evidence rather than one.

The division of work follows the scope boundary in section 8. We define the security requirements the hardware and its embedded layer have to meet, establish the assessment route, and carry the assessment and test cost in the certification line in section 5.2. Implementation sits in the on-device software layer, which we have assumed remains with Positive Carbon: secure boot and secure storage, access control, signed update delivery, event logging, and the vulnerability handling process behind them. The Cyber Resilience Act obligations that continue over the product life, including the reporting duty from 11 September 2026, the software bill of materials and the stated support period, fall on the party placing the product on the market, which is Positive Carbon rather than Shield Works. Neither obligation appears in the current documentation, which is why we have raised it here rather than in the exclusions alone.

Two further items sit with Positive Carbon rather than with us, as the party placing the product on the market: WEEE producer registration in the United Kingdom and each European Union market of sale, and packaging producer responsibility obligations. At around 800 to 1,000 units a year these are not trivial, and on the mass estimate in section 2.3 the annual tonnage places the company well above the small producer threshold in the United Kingdom. We flag them so they can be planned rather than met late.

2.6 The cost picture, and why the current bill of materials reads the way it does

The PRD holds the bill of materials at or under EUR 1,000 per unit, with an indicative figure of EUR 972. Our first observation is a definitional one and it matters more than any single line. That EUR 972 is a parts total, taken at European distributor list prices in single unit quantities and excluding inbound freight. It carries no assembly labour, no factory calibration or functional test, no packaging, no quality control, no factory overhead, no tooling or certification amortisation and no margin. It is a useful engineering discipline. It is not a comparison for a delivered unit price, and setting the two side by side without saying so would mislead in both directions.

Our second observation is more interesting. Reviewed line by line against the Chinese supply base, the bill of materials is materially wrong in both directions, and roughly right in total by coincidence.

LinePRD figureOur readComment
Camera moduleEUR 80LowerA Sony STARVIS class fixed focus module of the specification described is available at a fraction of this figure at these volumes. Specify the lens aperture explicitly in the request for quotation, because the low-light requirement lives in the F number rather than the sensor
Load cell transmitterEUR 90Substantially lowerA small sealed base-mounted sense node carrying a precision 24-bit analogue to digital converter with an RS-485 output replaces the discrete catalogue transmitter. Digitisation stays local to the load cell, so only a digital signal travels up the pole. That directly addresses the corrupted-reading fault in the field log rather than relocating it
Display moduleEUR 28LowerA 2.4 inch class colour IPS panel with an anti-glare window is well inside this figure
Antennas and connectorsEUR 24.52Higher than allowed forThe allowance covers the antennas but not the IP-rated bulkhead connectors a washdown product requires. We recommend the internal radome architecture of COMP-05 as standard, with a sealed external bulkhead fitted and blanked on every unit so the external option required by COMP-06 is site-selectable at install rather than a field retrofit. That is one build variant, and the bulkhead hardware needs to be in the allowance whichever way a given site is configured
StorageEUR 40Review in Phase 1Moving to a compute module with industrial onboard storage on a minimal carrier removes a board, a connector and a high speed routing problem from a sealed product. We flag it rather than recommend it, because DEC-15 and COMP-09 specify NVMe on the grounds that it degrades gracefully, and onboard storage is a deviation from that decision rather than a refinement of it. It is only defensible against a computed write budget for the store and forward buffer over the lease life. Note also that onboard storage is priced in the same memory market as a discrete drive, so this is a board and reliability argument, not a hedge against component pricing
Stainless fabricationEUR 313 across pole, base and rampMaterially higherThis is the significant gap. A sealed, seamless, self draining, ramped and premium finished stainless assembly of this size, welded and dressed to a hygienic standard, costs considerably more to fabricate at 800 to 1,000 units a year than the PRD allows

The mechanical side is where the cost genuinely sits, and it is worth being specific about why, because it changes where design effort should go. On our cost model for an assembly of this type and quality, welding and the weld dressing that follows it account for roughly a quarter of the cost of the fabricated mechanical assembly. Cutting, forming and the machined joint components account for around a further fifth, and raw material for only about an eighth, with assembly, finishing, inspection and overhead making up the balance. These are proportions of the fabrication, not of the delivered unit. The reason is that grinding a weld flush destroys the surface finish locally, so the whole panel then has to be refinished to blend, and large areas get refinished because of small welds. That is a design problem rather than a purchasing problem, and the levers are to move welds out of sight, to select a finish that blends rather than one that shows a direction, and to reduce weld length. Every metre of weld designed out is worth several times more than a reduction in sheet gauge.

The practical conclusion for Positive Carbon is that the parts budget was never the constraint on this product. There is real headroom against the EUR 1,000 ceiling once the electronics are sourced properly, and our recommendation is that the headroom is reinvested rather than banked: into a designed thermal path, a genuinely certified load cell rather than a lower rated part with an optimistic datasheet, hygienic levelling feet, IP-rated antenna bulkheads, and the enclosure engineering that makes the unit survive. Indicative unit pricing is set out in section 5.

One market condition should be stated plainly because it affects every figure in this document. Memory and storage pricing has moved violently through 2026, with contract prices for both DRAM and NAND rising sharply across successive quarters and no meaningful capacity relief expected before late 2027. Single board computer pricing has followed. Any figure we quote on the compute and storage lines carries a validity window, and the supply agreement will carry a pass through mechanism on those lines rather than a fixed price we would have to pad to survive.

03 — Volume & Timeline

Volume and Timeline Targets

Drawn from the PRD, the engagement scope note and the scoping call, and validated through Phase 1.

ItemDetail
Year One Volume800 units per year per the PRD and the scope note. The enquiry indicated approximately 1,000. Costed at both
Scaling TargetToward 10,000 units per year
Quantity Breaks to be Costed1,000, 5,000 and 10,000 units per year, plus the pilot batch quantity
Installed BaseApproximately 120 first-generation units in the field, which the new unit must coexist with on the same dashboard, platform and data format
Target MarketsIreland, Great Britain and the DACH region. CE marking as the expected route, with the UKCA position confirmed in Phase 1
Bill of Materials CeilingEUR 1,000 per unit of parts per the PRD, indicative EUR 972. Treated as a design to cost input, see section 5
Commercial ModelHardware leased, not sold. Positive Carbon owns and services every unit, so service life, field repairability and remote diagnosis carry directly into unit economics
Funding StatusConfirmed in place
Timeline9 to 12 months from Phase 1 confirmation to the first pilot units, and approximately 13 months to qualified production, subject to certification results, decision timing and component availability. Allow up to 15 months where schedule contingency is required, see section 5.4
04 — Phase 1, Engineering Validation

Phase 1, Engineering Validation

Phase 1 is the first paid engineering engagement in the program. It is the start of development rather than preparation for it. It resolves the questions in section 2, converts the open items in the PRD into documented engineering positions and recommendations, and delivers a costed, stage by stage development plan before any money is committed to tooling or testing.

Phase 1 is delivered by the Shield Works R&D team, led by our Head of R&D, working alongside C2W sourcing, compliance and commercial engineering resources.

Duration: approximately 8 working weeks from the Engineering Kick-off Workshop, which we would schedule within 2 weeks of project confirmation and receipt of the outstanding technical files. The workshop can be held remotely if travel cannot be arranged inside that window, so the program is not gated on diaries, and the teardown then proceeds with our own team in Zhuhai. The pacing items are the supplier engagement in Deliverable 5, which needs real engineering responses from stainless fabrication and load cell suppliers rather than headline quotes, and the thermal and ingress workstream in Deliverable 3.

What Phase 1 establishes, and what it does not. Phase 1 delivers engineering positions, recommendations and the data requirements that the decisions in section 2 depend on. Full specification, detailed design and physical validation sit in Stage 01 and the stages that follow it, and are costed in section 5. That boundary is drawn deliberately: it keeps the fee proportionate to a decision-making phase, and it avoids paying for detailed specification of a geometry that the decisions in this document may change.

Phase 1 is structured around six deliverables, each of which is real engineering or commercial work product.

01
Engineering Kick-off Workshop

A working technical session with the Shield Works R&D team, not an introductory call. We work through the product architecture, the PRD decision log, the field failure log, the eleven open items in section E2, and the commercial goals, and we agree the engineering priorities before work begins. The washdown regime, the weight and ramp decision and the display technology selection are settled or scheduled at this session. Our strong preference is to hold this as a factory visit in Zhuhai, combined with a teardown of a current production unit on our own bench, and we would note for the record that the hardware partner brief refers to Shanghai. Our facility is in Zhuhai, Guangdong.

02
Independent CAD, BOM and Design Engineering Audit

Written, annotated audit of the supplied native CAD and the bill of materials, with specific engineering findings and redline direction. Working from native geometry rather than a neutral export means material assignments and mass properties can be read directly, so the current unit's actual mass, gauges and platform footprint become measured values rather than assumptions, which is the cross-check the weight work in section 2.3 needs. Coverage includes the knock-down joint architecture and its tolerance stack, the base and platform structure against the loaded bin case, the seal and gasket strategy at every aperture, internal cable routing, the head architecture and its antenna and optical keep-outs, and a line by line reconciliation of the bill of materials against Chinese supply base pricing. Output is annotated engineering commentary and a ranked list of recommended design revisions.

03
The Two Central Engineering Workstreams

The dedicated work on the questions in section 2.2, delivered as two named studies.

Sealed Enclosure, Thermal and Ingress Integrity Model. A stated ambient and duty envelope, a passive thermal budget with a defined conductive path from the compute to the enclosure wall, and a condensation and pressure equalisation strategy compatible with the ingress target. The aperture schedule, listing every penetration including the moving weighing deck and the blanked external antenna bulkhead, with the sealing approach and the verification method identified for each. A recommended antenna architecture, supported by an explicit comparison of the internal radome route of COMP-05 and DEC-35 against external antennas mounted on the head at the same height, assessed on radio performance, ingress, cleanability and finish, since the current unit's external arrangement works today and an internal antenna inside a stainless enclosure is the harder radio problem. Radio design and in-enclosure validation is delivered by a specialist partner and is costed in section 5.2. An optical path specification covering window material, coating and shrouding, with the window treated as a serviceable item carrying a stated cleaning interval and a replaceable part rather than as a coating specification alone. A recommended ingress target confirmed against the actual cleaning regime. The knock-down joint concept and its validation approach to a stated deflection limit. And the free-standing stability position, covering overturning under a lateral push at head height and sliding at the ramp transition, with a recommended footprint, mass distribution and foot specification. Detailed sealing design and the physical stability and joint validation sit in Stage 01 and the validation stage.
Weighing Chain Integrity and Accuracy Model. Load cell selection and mounting, taken with the cell manufacturer's applications engineering. A recommendation that digitisation is local to the load cell, to be adopted as an architectural constraint subject to confirmation during Phase 1, so that no analogue signal crosses the pole joint. Isolation of the tower from the weighing deck, with the pole mounted to the base chassis, the deck carried on the load cell alone, and the harness routed across that boundary at negligible stiffness. The base architecture consequence set out in section 2.2. The bin liner and tare strategy against the 50 gram division. The factory calibration process and traceability, and the specification of the end of line calibration station that enforces it in production. The compensation work that follows from this architecture, meaning off centre and corner loading behaviour, thermal span and gain drift compensation, and the settle window and transient rejection specification, is defined here as a requirement and delivered in Stage 01 with the load cell supplier's applications engineering, since it is characterisation against a selected cell rather than a decision.
04
Preliminary DFM, DFA and DFX Engineering Assessment

Written assessment covering the fabrication and tooling strategy for a sheet and tube stainless route, material grade selection including where 316 is genuinely required against where 304 is sufficient, weld strategy and process selection with its cost consequence, post-weld pickling and passivation as a specified requirement rather than an assumed one, since the weld heat affected zone is where chloride attack begins and that interacts directly with the grade decision, surface finish specification, the electronics architecture and the extent of board consolidation justified at this volume, the compute platform recommendation together with the method and the duty cycle data needed to compute a storage write budget over the lease life against SVC-01, and where that recommendation departs from DEC-15 or COMP-09 the deviation stated with its reasoning, the certification pathway with its sequence, packaging and single parcel strategy, and a structured risk register with mitigations. Preliminary at this stage, against analysis and supplier data. Full DFM execution, drawing release and supplier qualification testing sit in the next stage.

05
Supplier Engineering Shortlist and Indicative Quotation

Qualified supplier shortlist drawn from the Shield Works supply chain and wider network across hygienic stainless fabrication, precision machining, load cells and metrology, electronics and PCBA, optics and displays, and sealing components, with first round engineering engagement to confirm capability and capacity. Indicative unit pricing at the volume tiers in section 3, together with indicative tooling and fixture costs. Final selection of any specialist supplier is confirmed at the quotation baseline gate rather than named in advance, so the decision is made on quoted evidence.

06
Development Roadmap (Full RTMP)

The consolidating document that carries the Phase 1 output forward into engineering, tooling, validation, certification, pilot and qualified production. It contains the stage by stage plan with timings and costs, the component level bill of materials, the mechanical and electronic development plans, the tooling and fixture strategy, the prototype and validation plan, the certification program and its cost, the pilot run plan, the production pathway, the quality plan and the risk register. On a program of this complexity this document typically runs to a substantial controlled engineering report rather than a summary.

Phase 1 FeeUSD 16,500, invoiced 50% on project confirmation and 50% on delivery of the Development Roadmap
DurationApproximately 8 working weeks from the Engineering Kick-off Workshop, scheduled within 2 weeks of confirmation and receipt of the outstanding files

The fee includes one consolidated client review and one revision of the Development Roadmap. Additional work arising from new requirements, or from source data that turns out to be materially incomplete, is agreed separately before it is started.

One thing worth being explicit about. The purpose of Phase 1 is not to push this product into production. It is to establish the engineering and commercial basis for doing so, and to do it before larger commitments are made. If the work shows that the thermal envelope cannot be met inside the ingress target, or that the accuracy claim cannot be held over a lease at the target cost, we will say so plainly and set out what would need to change. Establishing that for USD 16,500 is a better outcome than establishing it after tooling has been cut.

05 — The Path Beyond Phase 1

The Path Beyond Phase 1

Phase 1 ends with a costed, stage by stage development plan delivered as the Development Roadmap. The outline below is the shape of that path, together with our current view of what it costs, set out so the scale of the program is visible before Phase 1 is committed to. The firm figures are produced inside the Roadmap itself, once the open questions are settled and the supply base has quoted.

5.1 How the program is structured commercially

The development program runs as a gated stage pathway. The early stages are fixed cost and mandatory, and they carry the program to a supplier validated cost baseline. Every stage after that quotation baseline is indicative until the baseline is approved, and each is released only at its gate. No tooling, sampling at scale or production commitment is made before the cost baseline is agreed.

#StageGate at closeCost basis
01DFM, DFA and design for cost. Detailed engineering from the Phase 1 position, per part DFM, full sealing and stability specification, part consolidation against the cost targetDFM sign-off and cost target reviewFixed
022D and 3D technical pack and controlled bill of materialsTechnical pack issuedFixed
03Quotation. Structured request for quotation round to the supplier validated cost baselineCost baseline approvedFixed
04Sampling. Engineering prototypes, first integrated buildSample reviewIndicative
05Client approval 1. Design, cost baseline and sample sign-offTooling releaseNo fee
06Tooling and fixtures. Fabrication tooling, welding and assembly fixtures, inspection gauges, leak test rig, soft tooling for non-metal partsFixture and first article approvalIndicative
07Engineering samples. Off-tool build, validation matrix including ingress, thermal, load, stability, drop, vibration and transit, certification pre-scansValidation exitIndicative
08Client approval 2. Design freezePilot releaseNo fee
09Pilot run. Line validation, end of line calibration commissioning, pre-shipment inspection, formal certification in parallelPilot first article approvedIndicative
10Client approval 3. Pilot and certification grantProduction releaseNo fee
11Production and first shipmentFirst batch acceptedPer unit

The commercial effect of this structure is that the committed exposure at any point is the current stage only. The largest single capital item, tooling and fixtures, is committed after the supplier validated cost baseline rather than before it, so it is approved against quoted numbers rather than estimates.

5.2 Development investment

Current engineering estimate: approximately USD 195,000 to 285,000 from the end of Phase 1 through to validated pilot production, with a planning midpoint in the region of USD 240,000.

That figure does not fall due at any one point, and it is worth reading alongside the stage structure above rather than as a single number. It is spread across the stages in section 5.1 across the life of the program. It is committed gate by gate rather than up front. The largest single element within it, tooling and fixtures, is released only once the supplier validated cost baseline has been agreed, so it is approved against quoted figures.

The breakdown below shows where the estimate sits by workstream. It is built bottom up against this product rather than scaled from a comparable project, and it is reconciled against our own delivered costs on programs of similar complexity. It is indicative at this stage and it is refined into firm stage costs within the Development Roadmap.

WorkstreamIndicative USD
Mechanical engineering, industrial design, colour, material and finish18,000 to 28,000
Knock-down joint engineering, including prototype iterations and cycle testing6,000 to 12,000
Sealed enclosure, thermal and ingress engineering10,000 to 18,000
Weighing chain engineering and end of line calibration station12,000 to 20,000
Electronics engineering, signal path, power path and harness9,000 to 16,000
Radio and antenna integration5,000 to 9,000
Optical path engineering4,000 to 7,000
DFM, DFA, technical pack and controlled bill of materials8,000 to 12,000
Sourcing, request for quotation management and supplier qualification5,000 to 8,000
Prototype and validation builds35,000 to 55,000
Environmental, ingress, structural and transit validation testing8,000 to 16,000
Certification campaign, including laboratory and notified body fees and the cybersecurity assessment12,000 to 24,000
Tooling, fixtures, jigs, soft tooling and leak test rig32,000 to 62,000
Packaging design and transit qualification4,000 to 8,000
Planning envelope through validated pilotUSD 195,000 to 285,000

For completeness, the workstream ranges above sum arithmetically to USD 168,000 to 295,000. The planning envelope is the narrower band because those extremes assume every line lands simultaneously at its floor or at its ceiling, which will not happen in practice. Laboratory and notified body fees are carried inside the certification line as managed pass-through rather than billed to you separately, so the figure above is the whole cost of that workstream and not a management fee on top of it.

Two lines in that table are larger than they would be on a comparable product and it is worth saying why, so the figures can be tested rather than taken on trust.

Prototype and validation builds are the largest single surprise on this program. A hand fabricated stainless assembly built without production fixtures costs several thousand dollars per unit, where the same design in volume costs a fraction of that. Sheet metal fabrication carries one of the steepest volume curves in manufacturing, and at prototype quantities the multiple against production cost is substantial. A validation fleet of around 10 units across mules, engineering prototypes and design validation therefore represents real money. We hold this figure down by building the early mules from machined and printed parts rather than fabricated stainless, and by keeping the design validation fleet lean unless certification sampling forces it wider, but it does not reduce to a token line.

Tooling and fixtures is the second. There is no hard injection tooling on this product and that advice stands: at 800 to 1,000 units a year, sheet and tube fabrication with soft tooling for the handful of non-metal parts is both faster and cheaper, and it avoids a five figure sum in mould costs that would not be recovered. What the figure covers instead is the welding, assembly and inspection fixture set that makes a hygienic sealed assembly repeatable, and the leak test rig that proves the ingress claim on every unit. On a product where welding and weld dressing are the largest element of fabrication cost, fixture quality is what determines whether the cost model holds.

A reduced fixture route exists, and we would not recommend it. The program could start production with a reduced fixture set at roughly USD 25,000 to 30,000 rather than the full set, accepting more manual fit-up, a higher unit cost and higher scrap in year one, and adding fixtures at the point volume justifies them. Substituting the reduced set for the full one brings the planning basis to approximately USD 188,000 to 253,000, so the saving is in the region of USD 7,000 at the lower end of the envelope and USD 32,000 at the upper end. We set it out because it is your capital and the option should be visible, but our recommendation is the full fixture set. The saving is thin against the envelope, and what it buys is a permanently higher unit cost and more variation on a product where weld dressing is the largest element of fabrication cost. On a leased fleet that unit cost is carried for the life of every unit rather than recovered once, which is what tips the judgement. We will put both routes in the Roadmap with the unit cost consequence of each so the decision is made on numbers.

Excluded from the envelope above, and treated separately: the pilot batch units themselves, which are supplied at unit cost; the fully consolidated electronics carrier board, meaning the single-board integration of the compute, power, radio and sensing functions, which is a cost reduction exercise that does not pay back below approximately 5,000 units a year and is scoped at the volume step. The minimal carrier required by a compute module, and the small sealed sense node at the load cell, are a different and much smaller scope, and both sit inside the year one architecture rather than in this exclusion. And the on-device software, which is addressed in section 8.

5.3 Indicative unit cost

The figures below are presented in three layers, because a single number at this stage would be misleading in one direction or the other.

The research baseline. Where our cost model lands today, before any engineering has been applied to cost. It is deliberately un-optimised: no part has been consolidated, no specification value engineered, no supplier put into competition, and the mechanical package carries the full fixture set. This is the honest starting position, not a forecast.

Annual volumePreliminary planning range, FOB per unit, EURNote
1,000 units1,150 to 1,400Year one basis. Reduced fixture set sits at the upper end
5,000 units950 to 1,150Fabrication and electronics volume breaks begin
10,000 units800 to 980Requires the additional tooling and process investment in section 5.2

The engineered target. The value engineered working position, achieved through the design for cost work in Stage 01 and the competitive quotation round in Stage 03. The named levers are: reducing weld length and moving welds out of sight, selecting a surface finish that blends rather than shows direction, replacing the discrete load cell transmitter with the sealed sense node, sourcing the camera, display and antenna lines against the Chinese supply base, selective rather than universal use of 316 stainless, and competitive quotation on the fabrication and load cell lines. Each is a work package with an owner and a capture point, and each is validated or corrected at the cost baseline gate.

The design to cost input. The EUR 1,000 parts ceiling in the PRD is written into Stage 01 as an engineering requirement rather than treated as a prediction, and on our line by line review there is real headroom against it once the electronics are sourced properly. The distance between the research baseline and the target is precisely the work the next stages exist to close. What Phase 1 will not do is promise a delivered unit price before the engineering that earns it has been done.

One comparison worth making explicitly, because you will make it anyway. Your current unit costs in the region of EUR 1,200 to build in Dublin. Our year one research baseline is EUR 1,150 to 1,400 free on board, before freight, duty and value added tax into three markets, so on landed cost year one is not cheaper than today. That is the honest position and it is the right one to plan against. What year one buys is a unit that survives the kitchen, passes an enterprise evaluation, and can be built repeatably at 800 a year rather than a few units a day by hand. The cost reduction arrives at the 5,000 unit step, and it arrives through the design for cost work in Stage 01 as much as through volume. One further point specific to your model: because the fleet is leased rather than sold, the year one unit cost is a capital planning figure carried on your own balance sheet and recovered over the lease, not a margin figure, and at 800 units a year that is a material annual commitment worth sizing alongside this proposal.

The 1,000 to 10,000 unit curve is not smooth on this product. Most of the fabrication benefit is already captured by the time volume reaches 1,000 units a year, and moving materially below the 5,000 unit figures requires process and tooling investment rather than simply a larger purchase order. That is set out with its capital requirement in the Roadmap so the decision can be taken deliberately.

5.4 Timeline

9 to 12 months from Phase 1 confirmation to the first pilot units, and approximately 13 months to qualified production, subject to certification results, your own decision timing and component availability. For stakeholder planning we recommend allowing up to 15 months where schedule contingency is required. The 13 month figure is derived from the stage sequence below rather than assumed, and it is consistent with comparable programs we have taken from engineering through to qualified production. It is more conservative than the view taken on the scoping call, which was reached before the document set had been worked through, and the reason is sequence rather than pessimism: the certification campaign cannot begin until production representative samples exist, and the cybersecurity assessment route is the least predictable item on it. The sequence runs Phase 1, then detailed engineering to a first set of hand built samples, then design freeze, then tooling and fixtures built around the frozen design with first article and second article trials, then off-tool validation samples, then the certification campaign running in parallel with a pilot run of production representative units, then a limited production run to prove the line, then full production.

Three items carry the schedule risk and are booked or started early rather than tracked. Power management and Power over Ethernet controller components are currently running materially longer than normal lead times, so second sources are designed in at schematic stage and the first year of supply is bought forward. Certification laboratory slots are booked at the start of the validation stage rather than when samples are ready. And the cybersecurity assessment route is the least predictable item on the certification path, so it starts earliest.

5.5 The enterprise re-trial, and an earlier route to it

Section E3 of the PRD targets an upgraded unit on the enterprise customer's site in November or December 2026, decision DEC-27 records that trial as planned, and two of the eleven open items in section E2 exist to define its conditions. It is, on our reading, the commercial gate this program is actually aimed at. We should be straight that the industrialisation path set out above does not reach it. On a Phase 1 confirmation this month, the first production representative units arrive in spring 2027. Presenting a hand built engineering sample as a production unit is not an option with a buyer who declined the original tender on hardware maturity.

An earlier demonstrator is available. There is a route to that window, and it is a deliberately different build rather than an accelerated version of the same one. A demonstrator unit made from machined and printed parts, on a bought-in washdown platform scale module rather than an engineered weigh platform, carrying the real head architecture, the real camera geometry and working display, and the real deck and ramp ergonomics. Indicatively 10 to 14 weeks from Phase 1 confirmation, running alongside Phase 1 and the opening of detailed engineering rather than after them.

What it is not needs stating as plainly as what it is. It is not sealed to the final ingress target, it is not design for manufacture resolved, it is not certified, and it cannot carry an IP claim or a calibration certificate. It has to be presented to the customer as an engineering demonstrator of the resolved design, which in our experience is a conversation enterprise buyers receive well when it is framed honestly and badly when it is not. One further discipline matters: it is built from the Phase 1 architecture rather than ahead of it, because a demonstrator built to look right can quietly pull the production design toward geometry that cannot be sealed, welded or fixtured, and that costs more than the delay it saved.

Cost. Indicatively USD 30,000 to 48,000 for 1 to 2 units. A meaningful part of that is work the program needs regardless, since the head architecture, the camera geometry and the joint concept all have to be resolved anyway, so the net addition to the envelope in section 5.2 is in the region of USD 15,000 to 25,000. The return is not only the customer conversation. It puts real hardware against the two highest risk items on the product, the knock-down joint and the sealed thermal envelope, months earlier than an analysis-led path would, and findings from it feed the design freeze rather than arriving after it. The estimate assumes the use of available bought-in modules, non-production finishes, and no formal environmental, compliance or calibration testing. The firm scope and fee would be agreed after the Phase 1 architecture review.

Status. We have not built this into the figures in section 5.2, because it is your commercial call rather than an engineering necessity, and because it depends on a re-trial window we do not yet have confirmed. If the window matters, it should be decided at the Engineering Kick-off Workshop rather than later, since its value falls away quickly as the date approaches.

06 — Production & Fulfilment

Production, Supply and Fulfilment

The scoping call raised the downstream side of the engagement: buffer stock, direct to site shipping, spares and a returns and repair loop. We would rather be precise about what we do and do not operate than describe a capability we do not hold.

What we operate directly. Manufacture, assembly, integration, calibration and test at the Shield Works facility in Zhuhai. Component supply and supplier management. Layered quality control from incoming inspection through in process checks to final and outgoing inspection, with independent C2W pre-shipment inspection and container loading checks. Bonded warehousing and buffer stock holding in China, so finished units can be built to forecast and released against order rather than built to each order. Consolidation and export staging. Export documentation, VAT rebate handling and freight coordination, either through our own freight agents or a forwarder Positive Carbon nominates. Direct shipment from China to a nominated destination, including direct to site, by sea for volume and by air for urgent or early requirements. Spares kitting and supply of field replaceable modules against the same quality process as production units.

What we do not operate. We do not hold warehousing in Ireland, Great Britain or continental Europe, and we will not describe in-region consignment stock as our own capability. For a leased fleet rolled out across three regions, in-region stock and a regional swap and repair depot are the right answer commercially, and returning a unit to China for repair is not economic. What we can do is design for it: field replaceable modules, near-toolless service access that does not break the ingress seal, a defined spares list, and diagnostics that identify the failed module before an engineer travels. We would also be straight about why, because it is a capability question rather than a commercial one. In 21 years we have not operated an end client service interface, and we would not start on your program. Our clients hold that themselves, because they are on the ground, they hold the customer relationship and they have the field and customer service resources that a swap and repair loop actually runs on. Positive Carbon is the right party to own that, and we would rather say so than take it on and do it less well than you would. We are happy to share recommendations from our network on European logistics and repair providers, contracting directly with you.

The forward commercial model. Once a supplier set is confirmed and production begins, you receive a single unit cost per unit that covers goods, quality control, supplier management, packaging and logistics coordination. These are not billed as separate service fees. Tooling and fixtures are quoted separately and are never carried inside the unit price. The Phase 1 Indicative Quotation exists to establish those unit costs with confidence before any production commitment is made.

One point specific to a leased fleet. Because Positive Carbon owns and services every unit rather than selling it, build quality lands directly on your service cost and your unit economics rather than on a consumer warranty. The field failure log in the PRD makes that concrete: defective units reaching a customer, scale calibration drifting in the field, units dropping offline without recovery. Our quality process, the end of line calibration station and the 100% leak test are aimed at that specific exposure rather than at a general standard.

07 — What We Need

What We Need From Positive Carbon

The scoping call included a request that the proposal state the time and work expected from your side so it can be resourced. It is a fair question and rarely asked. The honest answer for Phase 1 is that this is not a full time commitment on your side, but it does need access to decision makers and one technically capable owner.

RoleCommitmentWhat is needed
Founder or product ownerApproximately 3 to 5 hours per week during Phase 1The Engineering Kick-off Workshop, decisions on the open items, and sign-off on the recommended ingress target, the weight and ramp decision and display technology
Engineering or technical leadApproximately 5 to 8 hours per week during Phase 1Day to day technical counterpart to our R&D team, access to the existing design files and field data, and the on-device software interface definition including the security requirements arising from section 2.5
Operations or field contactOccasional, a few hours in totalThe real washdown regime at representative sites, bin makes and models actually in use, and the install and service reality on the ground

The decisions that sit with Positive Carbon during Phase 1, because we cannot make them for you, are the confirmed washdown regime and the ingress target that follows from it, the weight target once the options in section 2.3 are costed, and with it whether the ramp travels inside the shipping parcel, the display technology selection, the enterprise acceptance criteria and re-trial conditions with the customer concerned, ownership of the on-device software and of the security requirements that sit within it, and confirmation of whether any customer will ever bill from the weight reading.

We already hold the native CAD of the current unit and 10 images of it, 5 in situ and 5 of the base. The in situ frames are stills exported from the walkthrough video rather than photographs, so the inputs we still need are the walkthrough video itself, which will show the mounting arrangement from angles the stills do not, a neutral STEP export alongside the native file for supplier quotation, at least one current production unit shipped to Zhuhai for teardown and reference, the field data behind the failure log, and the current declaration of conformity and certification file if one exists. A production unit on the bench is what settles the mounting question and any firm tooling or part count figure.

Beyond Phase 1 the commitment increases at specific points rather than continuously: design freeze sign-off, first article and second article fixture approval, validation sample review, and pilot approval. Each is a scheduled gate with a defined decision, and each is set out in the Roadmap with the notice period attached.

08 — Exclusions

Exclusions

The Phase 1 fee covers all six deliverables in section 4. The activities below sit outside this engagement. Where they are needed they are scoped and costed within the Development Roadmap, or coordinated through approved external partners. Sequencing them this way keeps unnecessary cost out of the early stages and avoids committing to tooling and testing before the fundamental questions are answered.

Detailed mechanical design, CAD development and drawing release beyond the audit and redline direction.
Full DFM execution, detailed sealing and stability specification, physical validation and supplier qualification testing. These sit in Stage 01 and the validation stage, per section 4.
Physical prototypes, samples, pilot batches and physical testing.
Tooling, fixtures and jigs, and the program specific equipment in section 5.2, including the end of line calibration station, its certified test masses and the leak test rig. All of it is customer owned once paid for, per your specification.
Certification and laboratory testing. The pathway, the program and its cost are established in Phase 1. The testing itself is carried out by an accredited laboratory or notified body, and those fees are carried inside the certification line in section 5.2 as managed pass-through. Any additional testing arising from a design change or a re-test is agreed with you before it is incurred.
On-device and embedded software. The cloud platform and the recognition model are out of scope by your own definition, and we have assumed the on-device software layer remains with Positive Carbon on the same basis: the store and forward buffer, the display driver and on-screen content, provisioning, signed over the air update delivery, and on-device diagnostics. The security requirements arising from EN 18031 and the Cyber Resilience Act are implemented in this layer. We specify them and establish the assessment route, as set out in section 2.5, but we do not build them. This is not within our scope and is not priced in this proposal. If you would prefer it to sit with us, it would be delivered by a specialist partner selected and managed by Shield Works rather than by our own headcount, and it would be scoped and quoted separately. We have flagged it because the PRD does not assign it explicitly and we would rather surface the question now than leave a gap.
Cloud platform development, recognition model work, and dashboard or on-screen graphic design.
WEEE producer registration, packaging producer responsibility obligations, establishment of the Great Britain importer arrangement and, if selected, appointment of a UK authorised representative. These sit with the party placing the product on the market.
Product liability insurance. See section 10.
In-region warehousing, consignment stock and repair operations in Ireland, Great Britain or continental Europe. See section 6.
Mobile network operator device certification, if a route to market through a network operator is ever pursued. This is a substantial separate program and is not currently assumed to be needed.
Shipping of samples or prototypes between China and Ireland.
Production unit costs for the pilot batch and beyond.
09 — Payment Terms

Payment Terms

Phase 1 Fee, Engineering Validation
USD 16,500
Fixed fee
Invoiced 50% on project confirmation and 50% on delivery of the Development Roadmap.
StageFeePayment trigger
Phase 1, Engineering ValidationUSD 16,50050% on project confirmation, 50% on delivery of the Development Roadmap

Costs for each subsequent stage are set out in the Development Roadmap and approved by you before any work on that stage begins. You will not receive an invoice from us that you have not already agreed. There is no long term lock-in, no retainer, and no minimum commitment beyond the stage in progress.

10 — Safeguards & Clarifications

Safeguards and Clarifications

Provisional status
The Phase 1 scope and fee are firm. The development figures in section 5 are indicative and are refined into firm stage costs within the Development Roadmap. The Engineering Kick-off Workshop is where the R&D team aligns the work against the real technical priorities before engineering begins.
Tooling gate
No tooling or fixture commitment is made until the DFM work and the supplier validated cost baseline confirm manufacturability and cost alignment. Tooling is the largest single capital item on the program and it is released against quoted numbers, not estimates.
Progression gate
Progression from Phase 1 into detailed engineering is gated on agreement of the ingress and weight targets, the electronics architecture, the cost model and the overall development budget. Each subsequent stage carries its own gate as set out in section 5.1.
Quotation accuracy
The Indicative Quotation delivered in Phase 1 reflects the current level of readiness for manufacture. Accuracy tightens in two steps: to a supplier validated baseline at the quotation gate, and to committed pricing once the bill of materials is frozen after validation. Every movement between those points is presented as a visible, evidenced difference rather than absorbed silently.
Component market conditions
Memory, storage and power management components are currently subject to unusual price movement and extended lead times outside either party's control. We manage this rather than ignore it: supplier quotations are taken with defined validity windows and re-confirmed at each baseline, second sources are designed in at schematic stage on the exposed lines, and the first year of supply on the longest lead items is bought forward. Where a component shows sustained upward pressure, a substitution review is run before the change reaches the bill of materials.
Currency
Phase 1 and the development stages are quoted in United States dollars, while unit costs and the bill of materials are in euro, which is the currency of your existing supply base and of the cost ceiling in the PRD. Supplier quotations carry their exchange rate basis and a validity window, both are re-confirmed at each baseline, and where a movement is material we will show it as a visible difference rather than absorb it into a padded figure.
Standards interpretation
The regulatory positions in section 2.5 are drawn from the current published regulations and guidance and are directional at this stage. Confirming them, including the cybersecurity assessment route and the question of whether a UKCA mark is required commercially, is part of Phase 1. Where our findings differ from the assumptions in the PRD we will set out the difference plainly and its design consequence.
Certification
Phase 1 delivers the compliance pathway, the test program and its cost. It does not deliver certification, and no certification outcome can be guaranteed in advance of testing. As the party placing the product on the market, the Declaration of Conformity and the associated obligations sit with Positive Carbon, and the Roadmap will make clear what those obligations are so they can be planned for.
Metrology
The device is scoped as an instrument for internal process control and customer information, which is exempt from non-automatic weighing instrument conformity assessment. If the intended use changes such that a weight reading is used for a commercial transaction, the regulatory position changes materially and the design and certification consequences are significant. We recommend the intended use is stated in your customer contracts and user documentation, and we will flag it in the Roadmap.
Product liability and insurance
As a China based contract manufacturing and assembly operation, Shield Works does not maintain standalone international product liability insurance for end market products. In standard international manufacturing practice, product liability responsibility and associated coverage are held by the product owner and brand holder placing the product into the market. We do maintain operational insurance coverage within China relating to employee accident coverage, public liability for visitors to our facilities, and property insurance covering facilities, equipment and inventory. Under our manufacturing agreement, liability for manufacturing defects in workmanship, process and Shield Works supplied material sits with Shield Works, capped at agreed contractual limits typically tied to the value of the goods supplied. Liability for the design of the product, including any defect that is a function of the original design rather than how it was manufactured, sits with the product owner. Shield Works provides a 12 month workmanship warranty on assembled product from despatch, and where component suppliers carry their own warranties those flow through to the finished goods. We would recommend Positive Carbon carries product liability insurance in each market it operates in, which is normal practice for any connected product and independent of who manufactures it.
Installed base
The new unit is required to coexist with the approximately 120 first-generation units already in the field, on the same dashboard, platform and data format. That requirement is carried through the engineering work. Retrofit or upgrade of existing field units is not in scope and would be assessed separately.
Scope changes
If requirements change materially during Phase 1, for example a change in the ingress target, the addition of a second bin format or a change in target volumes, we will set out the effect on cost and timeline and agree the change with you before proceeding.
Intellectual property
Positive Carbon retains all intellectual property in Scrappy, including the design, the CAD and any derivative work produced under our engagement. Shield Works retains only its own background IP, being its processes, methods and know-how. Tooling paid for by Positive Carbon remains Positive Carbon's property at all times, is held at the production facility solely for the purpose of producing your parts, and is reclaimable at any time on reasonable notice. All work is carried out within an IP-secure, ISO certified facility, and confidentiality and non-circumvention agreements cover every third party supplier before any external engagement begins.
Manufacturing routes
Hygienic stainless fabrication, precision machining, surface finishing, PCBA and packaging are delivered through the Shield Works verified supply chain, with Shield Works as prime contractor and single point of accountability. You deal with one commercial counterparty for the all-in supply. Where a workstream requires a discipline we do not hold in-house, it is delivered by a named specialist partner selected, contracted and managed by Shield Works on your behalf, and we will identify any such workstream in the Roadmap rather than leave it implicit.
Timelines
The 8 working week Phase 1 estimate assumes reasonable availability for the Engineering Kick-off Workshop and follow-up technical discussions, and receipt of the walkthrough video, a neutral STEP export and a current production unit on confirmation.
Confidentiality
This proposal has been prepared following review of documentation shared in confidence. The customer names, site names and commercial details contained in that documentation are deliberately not reproduced here.
11 — Why C2W & Shield Works

Why C2W Group and Shield Works

Shield Works combines product engineering, manufacturing engineering and China based execution within a single development program, integrated from the outset rather than run as separate handoffs. That is the specific problem Positive Carbon described: paying a design house for CAD and then managing the gap between that CAD and a factory.

In-house R&D, mechanical engineering, DFM and DFX, and quality control, led by Mark Jacobs, a mechanical engineer with over 27 years of manufacturing experience and CEO of Shield Works and the C2W Group, alongside Sourya Ghosh, Head of R&D, who has an aerospace engineering background and leads the engineering content of every Phase 1 engagement.
An IP-secure, ISO certified manufacturing facility in Zhuhai, Guangdong, at 100,000 square feet of precision assembly and production capacity, western owned and western managed, currently running over 400 active programs.
Over 21 years delivering products from China across a broad range of sectors, materials and processes, including high volume stainless pizza oven manufacture, industrialised from prototype to over 100,000 units per year.
Connected electronic products are a core part of the work, and we take them end to end: platform and module selection, PCBA integration and assembly, radio and antenna integration, the CE, electromagnetic compatibility and radio certification campaign, and volume production with end of line functional test. Circuit design on those programs sits with our long standing electronics partner, working to our specification and under our program management, which is the split set out below.
An established supply chain across hygienic stainless fabrication, precision machining, surface finishing and passivation, PCBA, and packaging, which is exactly the process set this product needs.
A full time dedicated project manager in our China headquarters coordinating all suppliers, engineering resources and your side of the project, with weekly written reporting and full visibility on who is making what and where.
Directly employed inspectors across China, so quality control on your production is carried out by our own people rather than subcontracted to an inspection platform.
In-house 3D printing, scanning and test capability, which keeps the prototype iteration loop inside the facility and reserves tooling spend for validated geometry.
In-house warehousing and third party logistics operations in China for buffer stock, consolidation, export staging and direct shipment to destination.
A single commercial counterparty, transparent factory selection, direct supplier relationships and open book tooling ownership. No hidden intermediaries, no opaque quotes, and no surprises on quality.
Delivered through our partner network, under Shield Works as prime contractor

Four disciplines on this program are delivered by specialist partners rather than by Shield Works headcount. We would rather set that out here than have it emerge later, and it is deliberate rather than a gap. You contract with one counterparty, we select, contract and manage the partners, and you carry no direct dependency on any individual one of them.

Electronics and printed circuit board design. The sealed sense node at the load cell, the power path and the harness are designed by an electronics partner we have worked with over the long term, to our specification and under our program management. Board assembly is then carried out either in-house or through our qualified supply chain.
Radio and antenna engineering. Antenna design and in-enclosure radio validation is specialist work and we do not hold it in-house. It runs through a radio partner together with the cellular module vendor's reference design, with over the air testing at an accredited chamber.
Weighing chain characterisation. Corner load, thermal drift compensation and settle window characterisation is carried out with the load cell manufacturer's applications engineering against the selected cell, which is the route that produces a defensible result rather than a modelled one.
Accredited testing and conformity assessment. Ingress, thermal, structural, transit, electromagnetic compatibility, radio and electrical safety testing is carried out at accredited laboratories, and the cybersecurity assessment through a specialist assessor or notified body. We define the test plans, book the slots, manage the campaigns and remediate the findings.

Mechanical engineering, DFM and DFX, fabrication and assembly engineering, sourcing and supplier qualification, quality control, program management and the manufacture itself are all delivered directly by Shield Works and C2W.

12 — Next Steps

Next Steps

01
You review this proposal and confirm acceptance of the Phase 1 scope and fee. Any questions on scope or sequence can be raised by email beforehand, and a technical call with our Head of R&D can be arranged if that would help.
02
C2W issues the first invoice, being 50% of the Phase 1 fee at USD 8,250. We confirm the mutual non-disclosure agreement is executed before the technical files are distributed internally.
03
You send the walkthrough video of the current unit, a neutral STEP export alongside the native CAD we already hold, and the user persona document, and arrange shipment of one current production unit to Zhuhai for teardown and reference.
04
We schedule the Engineering Kick-off Workshop, ideally as a factory visit in Zhuhai combined with the teardown. This sets the engineering priorities and puts the washdown regime, the weight and ramp decision and the display selection on the table with decisions attached. It is also where the earlier demonstrator route in section 5.5 is decided, if the enterprise re-trial window matters to you.
05
Phase 1 output, including the Development Roadmap, is delivered within approximately 8 working weeks of the Engineering Kick-off Workshop for your approval.

This proposal is non-binding at this stage and is intended to give clarity on cost, structure and what Phase 1 will actually produce. If you are happy with the direction, let us know and we will issue the invoice and get the Engineering Kick-off Workshop scheduled.

The software and the data platform are clearly the core strength of this business, and they are not what we are being asked to touch. The task is to build the unit that carries them, to a standard that an enterprise buyer recognises on sight and a commercial kitchen cannot destroy. That is precisely the work we are set up to do, and we would be glad to do it with you.

Warm regards,

Mark Jacobs

CEO, C2W Group / Shield Works

August 2026