- Contract Numbers - One mans opinion…
The contract number is simply a Â“numeric identifierÂ” of a legal document executed between the customer and supplier. Common sense tells me these Â“numeric identifiersÂ” follow an orderly sequence, #1,#2,#3Â…#145. If this is not the case for some reason the contract still has a dated signature by both parties. Contract order therefore is no mystery. Cirrus needs to simply sort the contracts by Â“dateÂ” and fill the orders accordingly. A simple listing of contract dates with corresponding contract Â“numeric identifiersÂ” would go a long way to clear the mystery of trying to relate contract numbers to actual production.
It should be safe to assume a contract dated 1/1/98 is ahead of contract dated 1/1/99, regardless of the “contract number”. In those cases where contracts were completed on the same day some type of Â“seniority orderÂ” must be established. Flip a coin or whatever but this must be done! For example Larry, Moe and Curly all executed contracts on 2/14/99. Given the low volume of production it makes a significant difference to Larry, Moe and Curly what their Â“senority orderÂ” is. This is a real issue but easily solved.
We have now established the fact there is no Â“direct relationshipÂ” between the contracts Â“numeric identifierÂ” and actual Â“aircraft production commitmentÂ”. The contract date therefore must establish Â“order of production commitmentÂ”. In other words contract date 1/1/98 gets his plane ahead of contract date 1/1/99, regardless of plane type!! These aircraft are so similar that the inline production process can handle a mix of both 20Â’s and 22Â’s. If Cirrus is aligning their production schedule based on Â“margin contributionÂ”, (i.e. SR-22 vs SR-20), without regard to the legally binding contract date then you may be upset however your signed contract may have some fine print that allows thisÂ… better read the fine print…
Consider the following real world issues and see if Cirrus can help you guys with the answers.
1.Customers who got “refunds”. These are the ones that simply got their money back and canceled the contract. The question is. What did Cirrus do with this contract. Did they stick it in their pocket for a company demo plane or incentive for a future investor? Cirrus may very well of legally Â“purchasedÂ” the contract from the customer.
2.Customers sell their position. These are the ones that bought the plane as an investment and wanted to make a few bucks. Does the new contract owner retain the original contract date? I would think so.
3.Customers have converted from a 20 to 22. Is it possible for a new -22 contract to jump ahead of the guy that holds an earlier -20 contract?
In any event the Â“contact dateÂ” should go to the new owner any they simple maintain their place in line. If Cirrus is putting later -22 dated contracts in front of earlier dated -20 contracts then you should be very upset. Am I missing something? I believe clarification of these issues would help reduce the frustration level I sense on this board. The planes are great and I want Cirrus to keep moving forward as much as anyone else. Perhaps with Sun N Fun just around the corner some of you guys can sit down with Cirrus and get the answers you deserve.