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Urgent information about price increase requests due to inflation

29 June 2022

We're currently experiencing the highest inflation rates in over 30 years and increased costs are beginning to affect our suppliers, which have begun to seek to increase the prices of their goods and services to cover these costs.


A process has been set up to deal with requests to increase contract prices due to inflationary pressures. It is vital that contract owners / managers do not accept requested increases automatically.

A template holding letter has been sent to departmental leads. Before any price increases are accepted this must be completed and sent immediately to your supplier to provide a response to any queries while the matter is being considered.

Once you receive the information to support the price increase as requested in the letter, a procurement business case (Protocol 9) should be produced which outlines:

  • the reason for the price increase and whether this is a short or long-term proposal
  • the proposed increase amount and the term (for example, 3 / 6 / 9 or 12 months)
  • the forecasted impact to the council over the remaining term of the contract.

Once complete, the business case should be submitted to procurement using the business case submission form for review.

Contacts

If you have any other queries in relation to this process, please contact:

Procurement

Teresa Gerrard, email teresa.gerrard@derbyshire.gov.uk

For Place and Property

Phil Mulchinock, email phil.mulchinock@derbyshire.gov.uk

For Adult Care and Children's Services

Chris Stone, email chris.stone3@derbyshire.gov.uk

For Corporate Services

Stuart Etchells, email stuart.etchells@derbyshire.gov.uk

Legal

Simon Macdonald Preston, email simon.macdonaldpreston@derbyshire.gov.uk Mary Fairman, email  mary.fairman@derbyshire.gov.uk

Finance

Tina Adams, email tina.adams@derbyshire.gov.uk or your finance business partner.