Upfront payments to suppliers
28 August 2012
Q: Our chief engineer is insisting that I place a contract for equipment and pay 20 per cent of the price immediately. I'm unhappy about the process followed and the demand for an upfront payment. How should I deal with this situation?
A: Ken Morris, senior consultant at Brian Farrington Ltd, writes: The most effective way to deal with this type of problem is to avoid it. The best way to avoid it (and similar issues) is to have a clear and fully sanctioned policy that defines all aspects of the contract formation process, including the authority to negotiate and...