Published
By Toby Belshaw
Suppliers on our compliant Washroom Services and Period Dignity Solutions framework PHS, have announced they are adding a fuel surcharge of 59p per service visit until further notice, which is over/above the agreed pricing and contract.
This change has been reviewed by the team at NWUPC and accepted, following a full review, with several discussions with PHS to establish clear mitigations and milestones for when this surcharge will be reduced and, ultimately, removed.
CPC has received a few queries about this, so we spoke to our in-house procurement experts and Head of Contracting, Peter McMullan, who said: "The key thing I want to stress is that using our frameworks will give all end-users a degree of protection, in instances like described.
"When you call-off a CPC framework and enter into contract with a supplier using the framework call-off terms and conditions, there are in-built procedures and processes that must be followed in situations where a supplier is seeking a variation to the contract. In simple terms, suppliers cannot just add surcharges (e.g. fuel) without following a defined and auditable process.
"Firstly, the order form at the beginning of the contract states whether charges are fixed for the full term or for a defined period, providing immediate protection against mid-contract price movements unless a formal mechanism is triggered.
"Secondly, the contract is very clear that no extra charges are payable unless agreed in writing by the institution, preventing suppliers from unilaterally applying fuel surcharges.
"Thirdly, a formal variation process must be followed, any change that impacts price must go through the variation procedure, with the supplier submitting a justified quotation, the customer has the right the accept or reject the increase and the supplier must continue delivering at existing prices until agreed. No automatic entitlement to price increase exists.
"Fourthly, suppliers can only request price changes in narrow circumstances (e.g. unforeseeable changes in law), general cost pressures are not automatic grounds for uplift unless contractually justified and agreed. Suppliers must maintain full records and allow audit access to demonstrate compliance and cost justification, ensuring requested increases can be evidenced.
"Finally, if a supplier attempts to impose unjustified increases, the customer can reject goods and/or services, recover costs or potentially terminate in extreme situations, creating real leverage to resist inappropriate pricing behaviour.
So, in summary, there are a lot of good reasons to use a framework, particularly in this economic climate, where global events are increasingly shaping prices, supply and demand.
As ever, Crescent Purchasing Consortium is here to help and support you on your procurement journey. Don’t forget that you can receive free face-to-face or online procurement support and assistance from one of CPC's Regional Procurement Advisors, a team of skilled procurement professionals who can help you to get the most out of your free CPC membership and provide support for our frameworks and services. In addition, we have also have a dedicated helpdesk that can support you with any queries, while each and every framework has a dedicated contact manager.