Be wary of low bids by contractors.

Get a number of bids. Compare and check why a low bid is so low.
If a low bid is accepted, be especially careful in your documentation, communication, contract conditions, and liabilities.

Be aware that by taking the lowest bid (especially if it is significantly lower than the others) you will be increasing the risk that the contractor won’t be able to deliver to the quality and schedule you require.

Tagged with: bid • contractor • Procurement • Risk

Filed under: Contractors • Procurement • Risk

When preparing a tender, signing a contract, or making a purchase order, be careful to check a potential client’s or contractor’s track record. They may be a known litigator.

Your company may keep a record of problem companies.

Preference would be to find an alternative supplier/contractor, or to not pursue the project.

If there is no alternative then you must be extra careful with the wording of the contract. You should also have senoir management review and approve the contract before signing it.

Tagged with: Client • Contract • contractor • litigator • supplier

Filed under: Contract