An unavailable budget price is a procurement and contract problem. Establish realistic sourcing options and their full effect before deciding how the job can proceed.
Corporate Recovery Partners
01 / 06
The estimate depends on a price nobody offers
A fencing contractor priced a development using an old material rate. When purchasing begins, every suitable supplier is more expensive. The customer contract is already accepted. The contractor needs current options and advice on the commercial position, rather than continuing to search indefinitely for a price that may no longer exist.
Check drawings, scope and quantities against the estimate. Identify whether the requirement changed or the original rate was unsupported. Keep that distinction clear when discussing the issue internally or with the customer.
Ask suppliers for current written offers covering the actual specification and delivery needs. An approximate catalogue price is not a reliable basis for the final comparison.
Include freight, wastage, order size, handling and any installation consequences. Business.gov.au supplier guidance highlights price, delivery and quality responsibilities. The lowest unit rate may not produce the lowest completed cost.
Check the reliability and capacity of a new supplier through lawful enquiries. A very cheap offer does not solve the problem if it cannot deliver acceptable goods in time.
Obtain advice before claiming an increase, substituting products or suspending work. Business.gov.au recommends documented variations and checking construction rules where applicable. A supplier cost increase alone should not be treated as automatic customer approval.
Explain a proposed change with supported cost and timing information. Keep rejected or unapproved variations out of confirmed revenue until the actual position is established.
Update the job and business cash forecast for each realistic route. Include costs of delay and existing obligations rather than comparing purchase prices in isolation.
Set a decision date before operational choices disappear. If no feasible route exists, seek appropriate contract and insolvency advice promptly rather than placing orders the business cannot pay for.
