Project managers often need to engage external vendors to provide the equipment, materials, or services required to deliver their projects. Procuring and managing these vendors can be a complex process that often functions as a project in its own right. Even after the RFP process is complete and contracts are signed, project managers must actively manage vendor performance, contract obligations, and deliverables until the work is complete and the contract is formally closed.
The following best practices can help improve vendor performance, reduce risk, and increase the likelihood of project success.
- Establish a single point of contact.
- Clearly define product, service, and performance requirements in writing.
- Incorporate the RFP and the vendor’s proposal into the contract.
- Establish a formal change management process.
- Include measurable delivery milestones.
- Tie payments to completed and accepted milestones.
- Define quality standards and acceptance criteria.
- Specify warranty, maintenance, service standards, and Service Level Agreements (SLAs), as applicable.
- Include a detailed Statement of Work (SOW) in the contract.
- Schedule regular project or program review meetings.
- Require periodic written status reports from the vendor.
- Build key decision points into the project plan.
- Develop contingency plans for potential vendor issues or delivery risks.