FIS has been made aware of pressures created in the supply chain related to plasterboard being supplied on allocation. FIS is exploring the situation in more detail, but early indications are that this relates more to unprecedented levels of demand rather than any significant supply side issue. Whilst there are a number of contributing factors, it seems unlikely that this situation will change in the near future.
The purpose of allocation is to distribute available product in the fairest possible way. However, as demand is greater than supply, it can create pressure on the wider supply chain. To effectively manage the situation, members are urged to discuss the situation with clients, consider material requirements and advise suppliers of supply requirements as early as possible. It is vital that companies consider contractual terms that may subject them to delay penalties and ensure that they do not accept contractual responsibility for supply side factors beyond their control. Availability may also lead to complexity in meeting specifications – FIS members are reminded that, when reviewing contractual obligations including specifications and requirements for performance and workmanship, or adapting a design or specification, that they do so in full consultation with suppliers and with the written approval of the designers and system owner to ensure they are not inadvertently accepting responsibility or design liability either through their actions or by way of contractual obligation.
If you have any questions, please do not hesitate to call the FIS on 0121 707 0077 or email email@example.com – members are reminded that through the FIS they have access to a free legal helpline.