Quality Should Be Your First Consideration

Put the time of delivery in your supplier contracts

On Behalf of | Aug 27, 2020 | Contract Law

When you create a contract with a supplier, your main focus lies on what specific parts and materials you need and what you are going to pay for them. You need to ensure that you can budget properly and pay only what you agreed upon delivery. You also need to make sure that there is no miscommunication and that both sides have a very clear understanding of exactly what parts and materials are required.

These are important points, but you also need to make sure you include a clause specifying the time of delivery. For instance, government acquisition contracts specify the required time of delivery when people bid for these contracts and reject those who cannot meet them.

This can be as specific as you like, but most people use a general time frame or even a day of delivery. It may be as simple as saying that it should be before noon every Tuesday, for instance, or from 3:00 to 5:00 in the afternoon. You don’t necessarily have to hold the supplier to the minute, but you need to know you can count on them.

After all, a late delivery could set your company back significantly. You could then produce and sell fewer products or miss shipping out your own orders on time. This is not your fault, but you are going to see the financial impact of these lost sales. By putting the clause about the delivery time in the contract, you make it an official contractual issue and you may be able to seek compensation if that contract is breached. Be sure you understand exactly what legal options you have.


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