by Eric Wolf

Created on: May 09, 2008

A successful relationship between any supplier and customer depends on a complete understanding between the two parties. In order for the relationship to work, both must be happy with the final result. This can only happen if the project is successful and profitable for the supplier and satisfactory and on budget for the customer. A thorough understanding of the project scope, variables and budget by both parties are the keys to this success.

Preparing a scope of work for a new project requires diligence on the customer's part. An incomplete or changing scope presents a challenge for a project manager and requesting a quote based on it is a sure way to make an enemy out of a supplier. Changes in or misunderstandings related to the scope of work can create pitfalls in a project that impede the supplier's ability to stay on schedule. A project manager may look at this as a inconvenience. For a supplier it is often the difference between making and losing money on a project.

Diligence is also important in the supplier's role. The scope must be reviewed carefully and any uncertainties resolved before a quote is submitted. A good supplier is one who will work together with a customer to make sure that as much of the work as possible is covered in the original quote. Assumptions made by the customer that the supplier cannot deliver for the specified price will make everyone unhappy. Identifying omissions and making suggestions will not only assure that the project turns out satisfactorily, but can also lead to opportunities for the supplier and fewer headaches for the customer.

Some changes are bound to arise and, again, a thorough understanding must be reached. Change orders should be spelled out as carefully as possible to the supplier and an itemized quote requested. Only after the signed change order is received by the supplier should any additional work proceed. A good practice is to spell out in the original scope that change orders may only be submitted by one person. The supplier must be ready to accommodate these changes and the customer must do his or her part to communicate the requirements as quickly and completely as possible when they arise.

Once a project is complete, the customer and supplier should discuss and come to an agreement on what worked and what didn't. Any outstanding issues should be addressed quickly and honestly. Neither party should walk away thinking that they have been taken advantage of. The supplier wants to see a satisfactory completion just as much as the customer does.

Suppliers and customers can count each other as friends at the end of a project only if both parties feel that they have been involved in a beneficial relationship. Diligence and communication are the materials with which that relationship is built.

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