It is ethical to ask, but how much information they can provide may depend on factors such as the contract language and whether there are specific procurement regulations involved.
The vendor should be able to justify their costs, but not necessarily at a line item level. Customers will sometimes try an micromanage the work statement of their vendors trying to strip out any contingency or line-item veto certain things they don't expect but may be important to the vendor. Also the estimating process is to some degree proprietary, and companies don't often like to give up all the details of the cost model, for example because you might give that SOW to a competitor.
...
1 reply by Wayne Dill
May 24, 2021 3:26 PM
Wayne Dill
...
Thanks Keith. Appreciate the response and acknowledge its insight.
Saving Changes...
Wayne DillSnr Project Manager| Bermuda Government, Ministry of HealthHamilton, Bermuda
May 24, 2021 2:58 PM
Replying to Keith Novak
...
It is ethical to ask, but how much information they can provide may depend on factors such as the contract language and whether there are specific procurement regulations involved.
The vendor should be able to justify their costs, but not necessarily at a line item level. Customers will sometimes try an micromanage the work statement of their vendors trying to strip out any contingency or line-item veto certain things they don't expect but may be important to the vendor. Also the estimating process is to some degree proprietary, and companies don't often like to give up all the details of the cost model, for example because you might give that SOW to a competitor.
Thanks Keith. Appreciate the response and acknowledge its insight. Saving Changes...
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Wayne
It is totally ethical and in fact part of the responsibility of the person in-charge to question the cost of a certain scope if they felt the cost is not justifiable if comapred to the scope. I personalyl always do that as and when needed.
RK
...
1 reply by Wayne Dill
May 26, 2021 6:48 AM
Wayne Dill
...
Thanks You. Appreciate the response and acknowledge its insight.
The answers have been numerous and of tremendous value to me.
Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Why do you consider is not ethical?
...
1 reply by Wayne Dill
May 26, 2021 6:45 AM
Wayne Dill
...
Perhaps ethical was a poor word to use - maybe "appropriate" is a better choice.
This has nothing to do with ethics. The vendor may choose not to provide transparency into their cost structure and that may influence your decision on how to proceed.
Kiron Saving Changes...
Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
Hi Wayne,
I can somehow understand why you might ask this question.
Any decision or action we make, including asking for an explanation for a price, may have or even has an ethical component, in that it affects others regarding common human values.
In this example, we might think it is disrespectful to ask (we might think the vendor expects to be trusted, especially in an east Asian context, or because of a relationship history). Or it is unfair to ask (other vendors are known not to disclose how they reached their fix price offer, so why should we ask this one).
The ethical issue is in your head, based on context and history and your awareness of ethical, human values. You can feel breaches of human values.
Thomas Saving Changes...
Riad AlhammoudProject management| LanganAbu Dhabi, United Arab Emirates
If later at any stage, you find the cost not fair/justifiable then you will be in trouble internally and externally so you have to ask for all details related to the cost. Saving Changes...
It's ethical. The vendor should give you transparency in the sales process Saving Changes...
Chris BlytheProject Management Consultant| Hawksview ConsultingNelson, New Zealand
yes its ethical, because you need to justify an investment to your organisation and demonstrate value for money.
...
1 reply by Wayne Dill
May 26, 2021 6:49 AM
Wayne Dill
...
Thanks You. Appreciate the response and acknowledge its insight.
The answers have been numerous and of tremendous value to me.
Saving Changes...
Adela TataruSenior Project Manager| Self EmployedVancouver, British Columbia, Canada
There is no ethical issue to ask a vendor to detail the price of the provided services/solutions.
Sometimes you might want to have options to be able to not take the full package in order to manage your budget and having the details of the proposal is totally normal.
You might not agree with specific costs for the detailed part but in this case you enter a phase of negotiation.
In projects I have vendors/contractors involved I now specify from the start that I need a detailed breakdown of the proposed package as it allows me to have options to choose from in case of budget issues.
...
2 replies by Kwiyuh Michael Wepngong and Wayne Dill
May 26, 2021 6:49 AM
Wayne Dill
...
Thanks You. Appreciate the response and acknowledge its insight.
The answers have been numerous and of tremendous value to me.
May 26, 2021 1:12 PM
Kwiyuh Michael Wepngong
...
It's ethical but be careful not overlook the Contract terms
Community Champion
