This post was republished to Online Education at 10:19:17 AM 12/17/2015

Keys to successful project execution: focus on vendors

Account Online Education

A contractor procures all items from vendors. All of them. Vendors are needed when the contractor bids
for the job. Vendors provide priced quotation which is assembled in the contractor’s bid. Vendors assist
the contractor throughout the construction life cycle up to commissioning and beyond. In short,
responsive vendors are the ingredients of a successful contractor.

Have you ever wondered what makes a vendor responsive?

Vendor response goes on increasing as the project proceeds. Vendor’s response is maximum with
prompt payment.

2 3 4
1
Prompt Manufacturing Prompt Prompt
drawing clearance inspection and payment
approval dispatch
clearance

Clients need to be fair while placement of orders. Price the job in proportion to the work. Procurement
is successful when both sides make profit. During order execution, they need prompt drawing approval,
manufacturing clearance, work fronts etc. Vendors need a one-point contact to address their issues.
They do not like to run behind projects, finance, procurement. No one likes it.

Vendors turn unresponsive when liquidated damages are levied on them without just cause. When it
happens, it affects other projects. Or the vendor stops supply to another project until their money is
returned back to them.

Vendors need to be treated well. One way is to be responsive towards their issues like purchase order
amendment, extension of time etc.

The second way is to treat them with respect. Most of the vendor personnel who visit us hold important
positions in their respective organizations. Keeping them waiting in the reception for hours is
disrespectful. Attending to them within a minute pleases them. Also, their emails have to be responded
back. No one likes silence.

Responsive vendors lead to responsive clients. And contractors need responsive clients.

There is something about the word “special”. And vendors are indeed special.