Contracts

Selvarin

4 weeks

Recovering service credits from a late supplier

Months of late deliveries had stopped two production lines. One clause and one firm letter recovered the credits and a better renewal.

Two people signing a supplier contract at a desk

Result

£64k

in service credits recovered

Client

Selvarin

Food producer, 35 people

Outcome

Credits paid, contract renewed on better terms

Fee

£3,100 fixed fee

Agreed before any work started

The situation

Selvarin’s packaging supplier had missed delivery dates for six months, stopping two production lines. The supplier blamed demand, offered no compensation and wanted to raise prices at renewal.

What I did

  • Read the supply agreement and found the service level clause and the credits it promised.
  • Calculated the credits owed from Selvarin’s delivery records.
  • Wrote one letter to the supplier setting out the breach, the amount owed and a proposal for renewal.
  • Negotiated new terms with tighter delivery windows and automatic credits.

The outcome

The supplier paid £64,000 in credits within four weeks and renewed on better terms. There was no court claim, and the two businesses still work together.

We expected a fight. Owen found the clause that mattered, wrote one firm letter and the supplier came back to the table within a week.

Tom Ashby

Managing Director, Selvarin

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