3 November 2004

New BPIF model terms and conditions to cut bad debt

The British Printing Industries Federation has unveiled an updated set of model Terms and Conditions suggested for use by members. The Terms have been developed in conjunction with the BPIF’s legal team and ICSM credit information network to ensure that printers who choose to use them can be confident that they are legally watertight for the print industry and protect against bad creditors. A good set of Terms and Conditions are meant to guard against the risks of debt litigation, both before and after entering the courtroom. Andrew Allies, member of the Institute of Credit Management from ICSM who assisted in the production of the documents, knows the value of effectively used Terms and Conditions. He notes a current case where a client is likely to lose £3-6,000 from a £14,000 invoice because of poor use of terms and conditions. He explains: “Without a set of Terms that can be proved to have been shown to a customer and agreed by them, a debtor can dispute prices for months, even years after a job has been delivered.” Written agreement to a set of Terms and Conditions lessens the initial risk of customers disputing charges, and provides protection if the matter does go to the courts. Andy Allies estimates that if all businesses properly used Terms & Conditions the industry would be able to increase debt recovery by almost 50% per year. The BPIF’s Model Terms and Conditions were designed with printers in mind, and so cover issues such as variations between colour proofs and completed jobs, ownership of plates and responsibility for electronic files. They are accompanied by notes that explain the relevance of the legal terms to printers, advising where printers may want to adjust them to suit their own practices, and recommending which sections should not be adjusted in case the legal meaning is altered. Anne Copley, Head of Legal Affairs at the BPIF, says that the new Model Terms will be a useful tool for members. “These documents combine with our existing credit vetting service with ICSM to further protect printers against bad debt and litigation. Obviously firms will negotiate special terms for more complex work, but these terms provide a sound basis for members carrying out standard jobs.” The BPIF emphasises that the Terms and Conditions are suggested terms only and will require slight modifications to suit every company. “It is vital that the companies themselves are familiar with the details on this document and do not simply copy and paste them into their company documentation.” Similarly she encourages members to take this opportunity to acquaint themselves with the terms being used by their suppliers. “If you want to avoid hassle in your dealings with customers and suppliers, it’s worth reading the small print.” Members are, of course, free to use any Terms and Conditions that they feel appropriate. BPIF members can find the Terms and Conditions, together with the accompanying notes, on the BPIF website at http://www.britishprint.com/members/terms.asp.