Need help in completing an Order

[Mr Mes]

Hello, this is my first post on this forum. I am looking for help to manage an order of FA bricks I have got.

My problem is I had filed a tender for this. As per the tender, there were no specified amount to be delivered in a day. But now the construction company to whom we are supplying are asking for the delivery of bricks more than we can manage.

We can deliver 5k bricks in a day but they are demanding atleast 12k daily. Problem lies in the price at which we sre supplying. The unit price is very low that we cannot hire any other delivery means (trailor) other than from what we own.

Can someone help me in this. I dont want to lose the order.

 

[Socio South West]

From what you say, it seems to me that you tendered on a basis that they wish to change after awarding you the job, and you are quite within your rights to charge for any additional delivery expenses, if that is the main sticking point to achieving what they now require. Their loss if they didn't clearly specify what they wanted, not yours.

I guess they also have you by the nuts in terms of settlement with all the usual construction industry discount for this, discount for that, 90 days extended credit etc etc...

 

[arcon5]

Sounds like you potentially have 2 choices..

Either do the deal and lose money

Or

Re-tender and risk losing the order

 

[Billmccallum]

where are the supplies and where are they going to???

 

[Mr Mes]

Arcon, Yes you are right, the problem is, we are small manufacturers and the orders is big. If we complete this order, we can raise our capabilities and market. On the other hand, the company we are supplying to are big and this is very small order for them.

They can have any other supplier but we can not risk to cancel the order. The reason I asked.

 

[arcon5]

Can you outsource any work?

 

[Guy@LMS_Procurement]

If your considering non supply (i.e. saying you can't deliver the amount required) - just check you are not liable for any additional costs. If you have a written contract its worth checking it to make sure your not going to put yourself in a difficult position either way, either by not supplying or by sub contracting.