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contract Q/A

Posted: Tue Dec 05, 2017 8:23 am
by rahul.kanugo
i opted for B as an answer , sating that we always use to discuss issue/concerns before going in to the meeting with supplier & reminding him that they must oblige to the contract,Please comment

Re: contract Q/A

Posted: Tue Dec 05, 2017 4:00 pm
by suresi00
This looks like Fixed price contracting. And it is quite common in FFP to default in the midst.

1, He is legally binded for the delivery of things based on the contract
2. There may be provisions for cancellation but again that needs to be done with procurement team legally,

Now the question is what is the first thing to do : when you get the call.

1, Hello Buddy we are legally binded , so think about the negotiation and legal claim settlement procedure to go through, is it worth. Here you creating a spark for him to think twice.

2. As this is becoming difficult for you to do let us meet and discuss about other alternatives.

If you do 2 first then it shows that we are desperate and ready to change the contract as and when needed, we went for FP for reducing our risk on these cost variations.