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What steps can we take when vendor assumptions lead to misinterpretation of upcoming change orders, resulting in sponsor reluctance to approve associated costs?

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Smit Shah Project Manager| Navitas Lifesciences Banglore, Karnataka, India
We find ourselves in a challenging position, mediating between our sponsor and vendor. It's become apparent that our team overlooked crucial aspects, leading to a failure to anticipate upcoming change orders or clarify scope adequately. As a consequence, the sponsor is withholding approval for associated costs.
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Nawoda Herath Senior Project Manager| 99x Colombo 03, Sri Lanka
My approach is to include all the assumptions in the proposal/SOW. If something is not listed, it is not included. This is how I managed my vendors. What do you think?
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1 reply by Smit Shah
Apr 11, 2024 5:54 AM
Smit Shah
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That is the ideal way but scope/assumptions were not clear in vendor's SOW which leads misinterpretation.
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Smit Shah Project Manager| Navitas Lifesciences Banglore, Karnataka, India
Apr 11, 2024 1:48 AM
Replying to Nawoda Herath
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My approach is to include all the assumptions in the proposal/SOW. If something is not listed, it is not included. This is how I managed my vendors. What do you think?
That is the ideal way but scope/assumptions were not clear in vendor's SOW which leads misinterpretation.
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Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada
Smit -

In the case where the assumptions used as the basis for planning and estimation were not included in the proposal from the vendor, it comes down to the vendor PM taking ownership for this oversight by apologizing to the client and providing greater transparency and detail for future proposals or change orders. The client might also insist on a firm fixed price or add in safety clauses of various kinds to reduce their risk going forward.

Kiron
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FAIZA KHALIL MIS,Policy & Project Coordinator| SAMBA BANK Karachi, Sd, Pakistan

Clarify assumptions early, document them in the project charter, and validate through joint review meetings. Use change control boards for transparent evaluation, provide impact analysis with data, communicate rationale clearly to sponsors, and establish a shared understanding before submitting change orders for approval.

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