When you buy, try to make sure that the price you are quoted and agree to is firm unless you want to provide for documented proof for escalation. In some cases you may want to allow a supplier to use the prices paid for material when purchased, perhaps for a construction site. Include your standard statement on your purchase order form that says that all prices are firm unless otherwise agreed in writing. Note that this term is contrary to and opposite to a term that many suppliers use on their sales acknowledgment or contract form. Don’t accept such a form if you are opposed to it. Don’t believe that it doesn’t matter if your purchase order has the reverse. When there are conflicts in written documents, any dispute going to court may result in the written terms being disregarded and replaced by the term decided by the UCC or by the court.

Also consider including a standard term on your purchase order that prohibits subcontracting any portion of the work on your order unless you approve the subcontracting and approve the subcontractor used. Alternatively or in addition, include a statement that the primary supplier will be held fully responsible for any delays or any quality rejections. Without such an agreement the buyer finds himself or herself in the middle where both the contractor and the subcontractor blame each other for any problem and deny any responsibility.

If you send out any material to be repaired or send unfinished inventory to be processed in any way you should make sure your agreement includes a clause that holds the supplier responsible for the safe keeping of your goods. The supplier should have insurance to cover such goods, and you should get a copy of the policy or at least a written statement that insurance coverage is in force.