Anywhere to download a draft contract type
Discussion
I work at a bespoke fitted furniture company and we are getting busier and busier to the point that I need to start subbing out some elements of work.
I have been asked to sort out some sort of sub contractor contract which includes things such as:
- delivering on time
- manufacturing to their quoted figures
- quality of finish etc
- financial penalties
- and also etiquette when installing products for us etc.
Is there any where I can go online where there would be examples I can download and adjust where nessecary?
I have been asked to sort out some sort of sub contractor contract which includes things such as:
- delivering on time
- manufacturing to their quoted figures
- quality of finish etc
- financial penalties
- and also etiquette when installing products for us etc.
Is there any where I can go online where there would be examples I can download and adjust where nessecary?
I know the FSB has a lot of stock contracts that you can download once you have joined. www.fsb.org.uk/
Best to get a lawyer as noted, and get them to look out for the following points.
Before you see the lawyer, think about the process, what some timings are, and what is realistic. Remember too, that going to a supplier and giving them a contract with unrealistic terms will mean they may not want to deal with you, OR, revert to their standard terms, e.g. the terms as per the purchase order. That means they will need to see some volume from you, though of course, do not give a volume guarantee or exclusivity clause as it will take flexibility away from you.
The last thing you want to do is waste money on legal fees.
delivering on time
"The Supplier will deliver the order within X days of the authorised order being acknowledged by the Supplier. An order sent by YOU Limited to the Supplier should be confirmed by a recorded acceptance, sent via email or facsimile. For the avoidance of doubt a verbal order is not sufficient to evidence this confirmation".
The goods should be delivered within X days of the acknowledged order, by close of business. In the event the goods are delivered X days late, YOU Limited reserves the right to charge a late delivery penalty as per schedule X. The Supplier will make reasonably steps to notify YOU Limited of late delivery.
- manufacturing to their quoted figures
Go for a price list, stipulated by volume/finish, with this being fixed, maybe subject to RPI for indexation /or annual review.
- quality of finish etc
Who will determine this? You, the supplier, or imperfections per piece, in critical places that would make the customer reject?
- financial penalties
As noted, you could have a late delivery penalty. Tiered by the number of days.
You should have late payment penalties
If you suffer consequential loss, e.g., if impacts a customer project, you suffer a loss, as a result of their non performance, you should try and back this off to the supplier. They should reasonably accept this clause if it is industry standard, if they don't, you hammer them on price.
- and also etiquette when installing products for us etc.
Tough, how do you mean? Is there a process for them to follow, would it not be easier to put in a service level agreement, with financial penalties in the event that customer complaints are higher than 95% etc etc.
Before you see the lawyer, think about the process, what some timings are, and what is realistic. Remember too, that going to a supplier and giving them a contract with unrealistic terms will mean they may not want to deal with you, OR, revert to their standard terms, e.g. the terms as per the purchase order. That means they will need to see some volume from you, though of course, do not give a volume guarantee or exclusivity clause as it will take flexibility away from you.
The last thing you want to do is waste money on legal fees.
delivering on time
"The Supplier will deliver the order within X days of the authorised order being acknowledged by the Supplier. An order sent by YOU Limited to the Supplier should be confirmed by a recorded acceptance, sent via email or facsimile. For the avoidance of doubt a verbal order is not sufficient to evidence this confirmation".
The goods should be delivered within X days of the acknowledged order, by close of business. In the event the goods are delivered X days late, YOU Limited reserves the right to charge a late delivery penalty as per schedule X. The Supplier will make reasonably steps to notify YOU Limited of late delivery.
- manufacturing to their quoted figures
Go for a price list, stipulated by volume/finish, with this being fixed, maybe subject to RPI for indexation /or annual review.
- quality of finish etc
Who will determine this? You, the supplier, or imperfections per piece, in critical places that would make the customer reject?
- financial penalties
As noted, you could have a late delivery penalty. Tiered by the number of days.
You should have late payment penalties
If you suffer consequential loss, e.g., if impacts a customer project, you suffer a loss, as a result of their non performance, you should try and back this off to the supplier. They should reasonably accept this clause if it is industry standard, if they don't, you hammer them on price.
- and also etiquette when installing products for us etc.
Tough, how do you mean? Is there a process for them to follow, would it not be easier to put in a service level agreement, with financial penalties in the event that customer complaints are higher than 95% etc etc.
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