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Schoolboy Error When It Comes To Orders


We pin point a common error when it comes to orders, and a few tips on how to avoid it…


When placing an order to your supply chain, you are always looking for the keenest price in an attempt to increase profits/margins. However, all that work may become waste of time if a professional protocol for issuing orders is not followed. I have seen it many times, when the concept of reducing you exposure to potential risks is not adhered to. Potential risks that lead to incurring additional cost, which in turn reduces your potential margin.The most common error is where a client issues an order to a supply chain with the words “as per your quotation”. The problem is that it’s too vague! Here are a few variables to consider…

• Have you read their small print? (i.e. their terms & conditions)
• Will they meet your programme requirements?
• Does their service/product meet the clients specification/performance requirements?
• Does their quote include all labours?
• Does their quote include for all plant?
• Does their quote include for all materials relating to that portion of work?
• Does their quote include transportation?
• Do they expect you to provide certain things on site? (i.e. access, power etc)
• Does their quote include design? (if contract includes a design portion)

The list can go on and on. The main point to get across is that an order should be issued accepting the keenest price you can achieve (the most realistic price as well), but at the same time the order is issued on your terms (and equally the terms of your ultimate client). In some respects, you are passing downline an like for like order that was received upline.

Should you wish to discuss the above in more detail or need assistance with any commercial aspects of your construction projects, please don’t hesitate to get in touch

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