Sub Specialty Contractor

Coming originally from the GC world, our organization always issued our PO document, including our specific terms, to the vendor, who then signed our document. Transitioning into the specialty sub arena, it seems vendors are unwilling to sign any type of purchase order document that does not originate from their office. This places the responsibility for delivering orders on time, correctly, etc. onto the sub vs. the vendor/supplier. The amount of risk we assume for this is amplified on large orders and large projects, and the vendor has no obligations to perform as promised.

Is this the standard in the subcontracting space, and/or have you had any luck working with vendors to reach a point where they will acknowledge your terms vs. using theirs exclusively? Have you had success with any alternative methods of reducing this type of risk?

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Deseray Gruben
Controller
Kovach Enclosure Systems LLC
Chandler AZ
(970) 597-0142
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Original Message:
Sent: 10/4/2022 12:58:00 PM
From: Deseray Gruben
Subject: Vendor Purchase Order Terms

Coming originally from the GC world, our organization always issued our PO document, including our specific terms, to the vendor, who then signed our document. Transitioning into the specialty sub arena, it seems vendors are unwilling to sign any type of purchase order document that does not originate from their office. This places the responsibility for delivering orders on time, correctly, etc. onto the sub vs. the vendor/supplier. The amount of risk we assume for this is amplified on large orders and large projects, and the vendor has no obligations to perform as promised.

Is this the standard in the subcontracting space, and/or have you had any luck working with vendors to reach a point where they will acknowledge your terms vs. using theirs exclusively? Have you had success with any alternative methods of reducing this type of risk?

------------------------------
Deseray Gruben
Controller
Kovach Enclosure Systems LLC
Chandler AZ
(970) 597-0142
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Kevin - thank you!

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Deseray Gruben
Controller
Kovach Enclosure Systems LLC
Chandler AZ
(970) 597-0142
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Original Message:
Sent: 10-05-2022 13:03
From: Kevin O'Shea
Subject: Vendor Purchase Order Terms

Our PO spells out our terms and conditions.  I put in their bill of material and cost on our PO and do not reference their quote in any manner at all.  I have not been challenged on it, but I feel that by performing under the PO, they have accepted our terms and conditions and waived their own.  I have yet had a vendor come back and ask me to sign their quote once I have issued our PO. 

 

Down side – for a one item, $10 PO, it's still five pages long.

 

Be safe and be healthy,

 

Kevin M. O'Shea

Chief Executive Officer

 

Your Mental Health And Safety Are As Important As Your Physical Health And Safety

 

preventconstructionsuicide.com

 

 

Original Message:
Sent: 10/4/2022 12:58:00 PM
From: Deseray Gruben
Subject: Vendor Purchase Order Terms

Coming originally from the GC world, our organization always issued our PO document, including our specific terms, to the vendor, who then signed our document. Transitioning into the specialty sub arena, it seems vendors are unwilling to sign any type of purchase order document that does not originate from their office. This places the responsibility for delivering orders on time, correctly, etc. onto the sub vs. the vendor/supplier. The amount of risk we assume for this is amplified on large orders and large projects, and the vendor has no obligations to perform as promised.

Is this the standard in the subcontracting space, and/or have you had any luck working with vendors to reach a point where they will acknowledge your terms vs. using theirs exclusively? Have you had success with any alternative methods of reducing this type of risk?

------------------------------
Deseray Gruben
Controller
Kovach Enclosure Systems LLC
Chandler AZ
(970) 597-0142
------------------------------