Stepping Your Way Through Vendor Negotiations

  CRM   Estimating   Outsourcing   Procurement Management   Resource Management   Scope Management   Stakeholder Management  

Being a program manager and a Do-It-Yourselfer, I have executed several projects around my house, some one by one and others simultaneously. One area that is particularly a challenge is when I find a need to sub-contract out those tasks that I know better than to take on myself--major electrical or plumbing work, for example.

As I planned my next big DIY project, I started to parallel my effort to those I have encountered many times when executing a program or project at work.

Vendor/Contractor Negotiation
There was one project where I did something that I would never let happen with a client project--not fully vetting a contractor/vendor before hiring them, and not getting an agreed-upon, signed contract service agreement.

So what is the root cause for this lapse in PM protocol that I allowed to occur with my own DIY project? Does it mirror what happens to some of you during execution of a client’s project?

1. Time Constraints: When your project has to be completed in a short period of time--and you did not have time for proper planning (reasons aside)--then you may end up selecting a vendor that is not fully qualified or cuts corners to save themselves costs (but not your costs). You may face delays upfront caused by the length of time it takes for procurement and legal reviews of the service agreement (plan two to eight weeks depending upon the situation).…

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