From purchase to delivery: which responsibilities must a fuel supply contract define?

Why a responsibility checklist matters

Most supply disputes are not trust problems — they are definition problems. Specification, metering, sign-off and settlement each carry local habits; unless aligned upfront, every difference becomes a monthly reconciliation cost.

1. Specification and quality responsibility

State the product standard applied (e.g. GB/T 23510—2009), certificate-of-analysis and document requirements, sample retention and retesting. Quality disputes resolve by testing at an agreed institution, with arbitration testing costs and liability assigned in advance.

2. Quantity and metering

Agree the metering method (mass or converted volume), equipment, tolerance bands, and how weighbridge or flowmeter records are retained by both parties. For shared tank storage, also state how quantity, quality and ownership remain identifiable.

3. Delivery planning and changes

Delivery windows, schedule communication mechanisms and change notice deadlines. Peak-season allocation rules are best agreed early — avoiding spot price escalation or abandoned orders.

4. Title and risk transfer

When title and risk transfer (ex-works, on arrival, or after unloading), who insures the transport, and who bears in-transit losses — these decide the first responsible party when something goes wrong.

5. Exception handling

Alternative supply arrangements, notification duties and cost bearing when upstream maintenance, logistics constraints or quality issues strike. Where dual supply exists, switching conditions and priority order should be written down.

6. Settlement and reconciliation

Reconciliation cycle, how statements map to delivery records, invoicing timing, payment milestones and overdue handling. Extended credit terms belong in the price — not as default free financing.

Bottom line

A good supply contract is not the one with the most clauses, but the one where every step has a single answer to: who is responsible, on what record, within what time. We confirm our supply plans item by item against this checklist.