Record delivery contingencies before delays
Practical answer: Record delivery contingencies before delays
Identify the milestone that matters to the business and the latest point at which a decision can be made. Describe a workable alternative, its limitations and the person who can approve it. Ask the supplier how a change would affect the existing arrangement. Keep these questions distinct from any formal contractual variation.
A contingency becomes useful when everyone can tell what would trigger it. April 2022 is a practical time for preparing an alternative to a planned delivery without quietly treating an uncertain arrival date as guaranteed.
Economic context
The RBA’s February 2022 overview described recovery from Delta lockdowns and the effect of Omicron-related absences on hours worked. Read the RBA overview.
An illustrative example
A hypothetical office needs equipment before a move. The buyer records a decision date for considering temporary equipment if dispatch has not been confirmed. The temporary option has its own suitability and cost questions. At the review date, the responsible person checks actual progress and decides whether to seek a change, rather than letting the original plan drift unnoticed.
Three points to take into the conversation
- Identify the trigger
- Describe the alternative
- Assign the review date
Before progressing the conversation, check that the purpose, current information, responsible contact and next review date are clear. For a corporate-information, supplier or partnership enquiry, contact EJN Services through its enquiry page.
The economic context comes from the report linked above. The process suggestions and examples are original editorial guidance, not RBA recommendations or records of EJN Services engagements.
