In you procurement do you require that bidder supply past financial statements?
When the RFP is for a important value or a critical part of the project, supplying financial statements of past 3 years is a mandatory part of the proposal or not.
Yes, in all industries I have worked (TELCO, Chemical, Finance, Research). Typically, Vendors ask to sign a Non-Disclosure Agreement prior to providing any financial information.
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1 reply by Vincent Guerard
Mar 11, 2017 7:29 PM
Vincent Guerard
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Non-disclosure Agreement, thanks for mentioning. Yes it need to be private.
Yes, in all industries I have worked (TELCO, Chemical, Finance, Research). Typically, Vendors ask to sign a Non-Disclosure Agreement prior to providing any financial information.
Non-disclosure Agreement, thanks for mentioning. Yes it need to be private. Saving Changes...
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
In the projects I took part in, yes, this is a mandatory requirement for critical packages especially with service provider and/or suppliers that you've never dealt with before.
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1 reply by Vincent Guerard
Mar 12, 2017 10:05 PM
Vincent Guerard
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New supplier are more at risk, or represent a uncertainty.
Old one can also have problem you are unaware.
Yes absolutely, especially for government contracts of all types. Saving Changes...
Henry HattenrathProject Consultant| Tectonic Engineering MSA LLCNew York, Ny, United States
In my contract experience in the rail transit industry, the RFP bid requirements did not include submission of specific financial statements. However, there are several forms and notarized statements/questionnaires [Schedules} the Buyer requires the Sellers to submit with proposals/bids including previous contract experience, contract performance, current liabilities and litigations, capabilities in performing the work, compliance with laws and lobbying regulations, and the resources, equipment and qualified personnel. As part of the Buyer’s evaluation, independent reports on the financial and legal status of the Seller are obtained from services such as Dun and Bradstreet.
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1 reply by Vincent Guerard
Mar 12, 2017 10:04 PM
Vincent Guerard
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Dunn and Bradstreet is a way to evaluate financial soundness of the seller. I see that you have extensive way to evaluate financial information on your sellers.
In my contract experience in the rail transit industry, the RFP bid requirements did not include submission of specific financial statements. However, there are several forms and notarized statements/questionnaires [Schedules} the Buyer requires the Sellers to submit with proposals/bids including previous contract experience, contract performance, current liabilities and litigations, capabilities in performing the work, compliance with laws and lobbying regulations, and the resources, equipment and qualified personnel. As part of the Buyer’s evaluation, independent reports on the financial and legal status of the Seller are obtained from services such as Dun and Bradstreet.
Dunn and Bradstreet is a way to evaluate financial soundness of the seller. I see that you have extensive way to evaluate financial information on your sellers. Saving Changes...
In the projects I took part in, yes, this is a mandatory requirement for critical packages especially with service provider and/or suppliers that you've never dealt with before.
New supplier are more at risk, or represent a uncertainty.
Old one can also have problem you are unaware.
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1 reply by Rami Kaibni
Mar 12, 2017 10:15 PM
Rami Kaibni
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We have a preferred vendor list for suppliers we've been dealing with since years and so far we never had any incident that any of them started with a good financial record and end with a bad record. Of course it might happen but until we sense there is anything wrong, we can't request from them everytime a financial statement because you develop some kind of trust with people and you need to make them feel that you trust them in order for them to have a level of comfort as well. For new suppliers, we always ask for financial statements.
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