Common use of Spot purchase arrangements Clause in Contracts

Spot purchase arrangements. Spot purchase arrangements may be entirely appropriate but can be detrimental to supply chain partners as opposed to more standard contracts that guarantee an income. Suppliers generally, but also in seeking funding or additional business, may be disadvantaged in only being able to reference spot purchase contracts. The Contractor should therefore ensure that wherever ‘spot purchase’ arrangements are utilised, options to transition to more stable contractual referral systems are reviewed at regular periods.

Spot purchase arrangements. Spot purchase arrangements may be entirely appropriate but can be detrimental to supply chain partners as opposed to more standard contracts that guarantee an income. Suppliers Subcontractors generally, but also in seeking funding or additional business, business may be disadvantaged in only being able to reference spot purchase contracts. The Contractor should therefore ensure that that, wherever ‘spot purchase’ arrangements are utilised, options to transition to more stable contractual referral systems are reviewed at regular periods.