Unless you’re a market mover, you probably don't have the time or leverage to renegotiate resin contracts every quarter. That makes it even more critical to get the terms right before signing.
But in volatile resin markets, pricing isn't the only risk you're taking on.
From hidden fulfillment gaps to outdated force majeure clauses, contract blind spots can quietly drain margin or put production at risk. A single ambiguous clause can cost you when markets shift. And they always shift.
That’s why we’ve created this checklist, outlining the core questions buyers should ask before locking in any resin agreement. It's built to surface risk, clarify supplier obligations, and help procurement teams evaluate what they're really signing up for. So, on that note, let’s make sure your next contract is your best one.
Procurement teams know resin is one of their largest cost centers. But evaluating supplier contracts requires more than price benchmarking. Too many buyers overlook terms that introduce hidden risk, assuming suppliers will act in good faith when issues arise.
That assumption gets expensive fast.
Consider the challenges most buyers face:
The result? Many buyers sign contracts with opaque price models, weak protections, or ambiguous performance terms. They don't realize the exposure until markets shift or supplies tighten.
As you’re about to see, a formal checklist levels the playing field. It forces clarity on the terms that matter most, regardless of team size or resources.
The difference between a good resin contract and a great one often comes down to the questions you forgot to ask.
This checklist captures the critical evaluation points that separate protected buyers from exposed ones. We've organized them by risk category to help you systematically work through any supplier agreement. Print it out, share it with your team, use it as your guide during negotiations.
Because the best time to spot contract gaps is before you sign, not when markets shift and those gaps start costing real money.
8. Does the contract require backup sourcing protocols during force majeure events? "Acts of God" clauses shouldn't give suppliers a free pass. Look for specific backup requirements.
9. Are supply interruption remedies clearly defined with specific timeframes? Vague promises mean nothing when production lines are down. Get concrete resolution timelines.
10. Who bears risk for port delays, customs issues, or transit problems? Know exactly when title transfers and who pays when shipments stall.
11. Are lead times contractually guaranteed with meaningful penalties? "Best efforts" isn't a guarantee. Real commitments come with real consequences for failure.
12. Does the supplier provide transparent capacity and inventory visibility? You can't plan without data. Regular updates on availability help prevent surprises.
13. Is there a formal escalation process for supply disruptions or quality issues? Know who to call and what happens next. Clear escalation paths save critical time.
14. Are material specifications, testing protocols, and quality standards clearly documented? Ambiguous specs lead to disputes. Every parameter should be measurable and verifiable.
15. What documentation must accompany each shipment? COAs, MSDS sheets, regulatory certs—missing paperwork can shut down receiving. List requirements explicitly.
16. How are quality claims and non-conformance issues resolved? Returns, credits, or replacements? Know the process and timeline before you need it.
◻17. Does the supplier provide all required regulatory compliance statements? FDA, REACH, RoHS—your requirements become their obligations. Get it in writing.
18. Are termination rights clearly defined for both parties? Exit clauses protect you from bad partnerships. Reasonable notice periods work both ways.
19. What are the minimum/maximum order quantities and delivery flexibility? Business needs change. Ensure your contract can adapt without massive penalties.
20. Does the contract include change notification requirements? Material or process changes can affect your product. Mandate advance notice for any modifications.
21. Are liability limits and indemnification responsibilities clearly allocated? Know who pays when things go wrong. Unlimited liability is a risk you can't afford.
Checklists help surface risk, but it’s data that gives you leverage. Unfortunately, most buyers don't even challenge supplier answers. Not because they're passive, but because they don't have the data to prove otherwise. And suppliers know it.
Without real market visibility, you're negotiating from their playbook:
Data makes the difference between accepting supplier terms and actively shaping them. So, while the questions above help you spot the gaps, market intelligence helps you close them.
Armed with real-time analytics and accurate benchmarks, you transform from price-taker to active negotiator. That's the power of combining our checklist with actual market intelligence—you know exactly which terms to push for and why they're justified.
In volatile resin markets, unclear or unfavorable terms compound into real losses—quarter after quarter. This checklist will help expose hidden risks and cut those unfavorable terms off at the pass, making it invaluable for resin buyers trying to level the playing field.
But real negotiating power comes from pairing these questions with accurate market data and nuanced, forward-looking analytics. Because when you know exactly where prices should be and which terms reflect actual market conditions, supplier conversations shift in your favor.
Ready to pressure-test your resin pricing and contracts with real-time market data?
See how ResinSmart helps procurement teams level up their forecasts, spot unfavorable terms and pricing, and negotiate from strength. Real-time analytics transforming contract evaluation from guesswork into a genuine strategic advantage for your team—that’s ResinSmart.
Contact us to schedule a free demo today.