Vendor selection

The cheapest quote is often the most expensive one once delays, extras and missing guarantees are counted. This skill makes quotes comparable, checks the risks behind the price, and lists what to ask before signing.

When to use

• When the project needs an outside contractor, supplier, freelancer or tool.
• When quotes are on the table and are hard to compare.
• Not for the overall budget: use project-budget.

Inputs

1. What is needed: the scope, the deadline and the budget.
2. The quotes or offers already received, and the country.
3. What matters most: price, quality, speed, trust, after-sales service.

Method

1. Write a short specification so that every supplier quotes the same thing: scope, quantities, quality level, deadline, constraints of the site or the system.
2. Get at least three comparable quotes and put them line by line in the same table: what is included, what is excluded, unit prices, taxes, deposit and payment terms, delays, validity of the quote.
3. Check the risks behind each offer: references and reviews you can verify, registration of the company, insurance and guarantees required for this kind of work, subcontracting, cancellation terms. Large deposits before any work starts are a warning sign.
4. Check the official rules that protect buyers in the country, on the official page and with the date (for example service-public.fr and the DGCCRF on economie.gouv.fr in France, the Your Europe portal for cross-border purchases in the European Union, the local consumer office in Spain).
5. Score the offers on weighted criteria (decision-making), price being one criterion among several.
6. Prepare the negotiation and the questions before signing: what is unclear, what is missing, a payment schedule tied to milestones, penalties for delays when they make sense.
7. Write down the choice and the reasons, and keep the losing quotes: they help if the chosen supplier fails.

Output

### Quotes compared: <need> (<date>)
| Line | Supplier A | Supplier B | Supplier C |
|---|---|---|---|
| Included / excluded | | | |
| Price (taxes included) | | | |
| Deposit and payment terms | | | |
| Delay | | | |
| Insurance and guarantees (checked) | | | |
| References (checked) | | | |

Recommendation: … | Questions before signing: 1. … | Rules checked on <date>: <links>

Quality bar

• Quotes are compared line by line on the same scope.
• Insurance, guarantees and buyer rules are checked on official pages with the date; nothing is assumed from memory.
• Price is one weighted criterion among several, and warning signs are named.
• This is not legal advice: for a large contract, suggest a professional review.
• Written in the user's language, with the terms below.

Terminology

Sources

• Kraljic, P. (1983). Purchasing must become supply management. Harvard Business Review, 61(5), 109–117.
• Service-Public.fr (official portal for individuals in France): https://www.service-public.fr
• Your Europe (European Union): https://europa.eu/youreurope