On average, a corporate real estate project, such as a relocation, new development, renovation, or decommissioning involves at least 15 different vendors that need to be managed and coordinated. The supervision of these vendors is critical to facilitate efficient project execution. Without proper coordination, projects will experience delays in the schedule which in turn leads to unexpected costs. Consider these 7 ways that vendor management sets your project up for success:
1. Ensuring Expectations are Clear
Thinking through all the details at the onset of the project is the foundation of a successful Relocation Experience. Communicating these details to the various vendors and requesting specific and detailed statements of work gives clear expectations for the client and vendor.
2. Continuous and Accurate Communication
Active communication through the process is key to ensuring the target dates are met for each step of the project and minimizes the need for costly change orders along the way. It also makes sure that sites are ready for work when vendors arrive which is key to ensuring delays and unexpected costs are avoided.
3. Understanding Interdependencies
In order for a vendor to perform the needed services, the site must be ready for their work upon arrival. Many times this preparation is dependent upon another vendor having their part completed. Coordination and attention to these details minimize the ‘domino effect’ created by missed deadlines.
4. Keeping Vendors Motivated
When the proper coordination of activities is achieved, the vendors are motivated to complete the job as proposed without interruption. If the site is not ready when the vendor arrives they will move on to the next project. This causes delays to your project adding time and cost.
5. Reconciling Invoices
A dedicated vendor manager is intimately familiar with all aspects of your project. As they oversee the execution of activities they make sure the services are exactly what was defined in the project scope, and the invoices for the products provided and services being performed are accurate.
6. Managing Scope Change
Nearly all relocations require changes as the project evolves. Managing this change requires an understanding of the industry and reasonable costs for products and services. A vendor manager audits whether the scope change is appropriate and protects against the risk of scope overlap with another vendor.
7. Avoiding Intra-Vendor Issues
When vendors arrive they need to be able to access the site safely and take care of their piece of the project as they have proposed. If another vendor is running behind it creates conflict in the project environment and potential scope creep that affects the safety and capability of other vendors.
Relofant wants your corporate project to be successful. Please let us know if you would like to learn more about how Relofant can help with vendor management for your project.