Friday, 14 November 2014

BT-7M Cost

Disagreements between the client and supplier about the cost of an item are nothing new. The T-40 stirred up such a disagreement, let's see how well the more mature BT-7 design fares when the BT-7M is ordered:


"ABTU opinion:
ABTU proposes that the BT-7M be sold for the price agreed upon by the Government by decree #592-198s issued on September 4th, 1939, until a new decree is issued for 1940 prices.

Prices:
  1. BT-7M regular: 161400 roubles
  2. BT-7M with radio: 165300 roubles
  3. BT-7M with AA gun: 165400 roubles
Total sum of the agreement is 151177800 roubles, one hundred and fifty one million, one hundred and seventy seven thousand, eight hundred roubles.

Factory #183 opinion:
We propose the following prices:
  1. BT-7M regular: due to the increased cost of rubber according to EKOSO and NKF directions, the cost increases by 2260 roubles. Design changes introduced after the price was agreed upon: 4340 more roubles. Total: 168000 roubles.
  2. BT-7M with radio: Increased cost of rubber: 2260, design changes: 4640. Total: 172200
  3. BT-7M with AA gun: Increased cost of rubber: 2260, design changes: 4340. Total: 172000
Based on these calculations, the sum of the contract for BT-7M tanks should be 157354000 roubles, one hundred and fifty seven million, three hundred and fifty four thousand roubles. The factory considers the increase in price justified, as in January of 1940, ABTU was instructed by the NKF to pay for rubber such that rubber prices remained constant, and must continue to do so. The changes in the list must be paid, as it was in 1939, which was subsequently approved by the government."

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