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How to manage a Vendor who is not reliable ?

I am a PM of a Project that develops a product with the help of vendors.  Each vendor has their own PMs to manage the development of the modules at their end.  My job as a PM is to complete the project on time within budget with defined quality and implement it to production.   

The duration of the project is 4 months and at the end of 15th week, one of the vendor who is responsible for developing the key functionality emails me that the component he is going to develop will not be ready for the proposed implementation and he would be needing additional time.  The sponsor will NOT agree to grant additional time for this vendor because:
* vendor is not prompt in providing the project status
* vendor showed a similar behaviour in his last projects
* sponsor thinks vendor will not keep his promise for the new date.

What are the options for me to work with this vendor to deliver the product as he has the key knowledge of the subject?

Apprecitate your thougts and thanks in advance!
asked 7 years ago by anonymous

1 Answer

There seems to be only two good options:

1. Take a hard look at what this vendor is doing and work with them to identify changes in scope or resources that might keep the project on track.
2. Upon not succeeding with 1), take what you have learned and a new go forward plan to the sponsor for additional advice or consideration.

You are now basically negotiating between the vendor and sponsor.

Whatever you decide, be sure to document the lessons learned:
- if you are going to use this vendor again, you need to take a look at the procurement contract in place and make sure it spells out terms for late delivery and non-performance
- start a search for a new vendor or see if their knowledge can be developed in house
answered 7 years ago by sdcapmp (45,840 points)

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