Supplier price rise checklist
10 checks before you accept a supplier price increase. Use it for any contract, in any sector.
The 10 checks
Find the clause
Does the contract allow a price change at all? Look for a price review, indexation or adjustment clause, any fixed-price period and the review dates. If there is no right to increase, any increase is a request, not an entitlement.
Check the mechanism
If there is a mechanism, check it was followed: the index named, the base date, any cap or collar, how often it applies and the formula. Recalculate the figure yourself.
Check notice and timing
Was notice given in the form, to the person and within the time the contract requires? Late or informal notice may affect when, or whether, the increase applies.
Ask for the evidence
Ask the supplier which cost lines have risen, by how much and why. A credible increase comes with a breakdown, not a percentage.
Test it against the market
Compare with published indices, recent quotes and what similar buyers pay. A cost rise in one input does not justify the same rise across the whole price.
Separate price from scope
Check the increase is not covering extra volume, new requirements or work outside the contract. Those are variations and should be handled as such.
Check performance first
Is the supplier meeting its service levels? Are service credits, remedies or open issues outstanding? Settle performance before you discuss price.
Know your position
How long is left on the contract? Is there a break clause, renewal date or option to extend? How hard would it be to switch? Your options set your leverage.
Look for alternatives to a straight increase
A phased increase, a longer term in exchange for a lower rise, a change to the specification, a volume commitment or shared efficiency savings may all serve you better.
Public sector: the Procurement Act 2023 or the Public Contracts Regulations 2015 may apply, depending on when the procurement started. Changes to a public contract must be permitted under the rules that apply to it, so check before agreeing a variation.
Record what you agree
Agree any change in writing through the contract's variation procedure, update the contract register and budget, and set a date to review the price again.
Want a second opinion? Email admin@acquireconsultantsolutions.co.uk.
This checklist is general guidance in plain English, not legal advice. Check your own contract and take legal advice where a decision depends on it. Published by Acquire Consultant Solutions Ltd. Last updated 01 Nov 2026.
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