Frequently project managers need to reach outside their organization to acquire equipment, materials, or services to fulfill the needs of their projects.
Engaging outside vendors is a complex process and is sometimes managed as a sub-project in itself. Even after successfully navigating the complexities of the RFP and contracts, the project manager must manage the vendor and the procurement contract until all deliveries are complete and the contract is closed.
Here, in no particular order, are a few best practices for managing your project’s vendors or suppliers.
- Insist on a single point of contact
- Define in writing the required product or services requirements or performance specifications
- Include the RFP and vendor proposal as part of the contract
- Define a change management plan
- Include delivery milestones
- Base payment on completed and accepted milestones
- Define quality standards
- Define warranty, maintenance and/or services standards and service level agreements (SLA)
- Include a Statement of Work in the contract
- Schedule regular management and/or program reviews
- Require written vendor reports
- Build in “decision points” into your project plan, and
- Have contingency plans in place