STAKEHOLDERS & COMMS · LESSON 05.07intermediate

Vendor management.

Outsourcing isn't outsourcing accountability.

↳ tl;dr

Working with vendors and contractors is its own discipline. Three jobs: pick well (RFP / RFI), define the work (Statement of Work), and manage performance against the contract. The cardinal rule: the vendor is responsible, but you're still accountable when it goes wrong.

RFP / RFI / RFQ

  • RFI (Request for Information) — early-stage. "Tell us what you offer in this space."
  • RFP (Request for Proposal) — "Here's our problem; propose a solution + price."
  • RFQ (Request for Quotation) — late-stage, well-defined. "Here's exactly what we want; quote the price."

Statement of Work (SOW)

The contract that defines: what gets delivered, by when, for how much, with what acceptance criteria, and with what remedies if it doesn't. Vague SOWs produce expensive arguments. Specific SOWs protect both sides — the vendor knows when they've done the job; you know when to pay.

the vendor-as-scapegoat trap

When a vendor underdelivers, it's tempting to blame them. You as the PM are still accountable to your sponsor. The questions to ask yourself: did we pick well? Was the SOW clear? Did we manage performance early enough to catch this? A bad vendor outcome is usually 50% the vendor and 50% the PM's management of them.

Performance management

  • Define KPIs at contract time, not at issue time.
  • Review against the KPIs on a published cadence — weekly for high-risk, monthly for steady-state.
  • Surface concerns in writing, with specific contract-language references. Build a paper trail before you need it.
  • If you have to terminate, do it cleanly — the way you exit the relationship is its own reputational signal.

// sources

Sources cited

  1. [01]
    A Guide to the Project Management Body of Knowledge (PMBOK Guide), 7th Edition

    Project Management Institute (PMI) · 2021 · retrieved 2026-04

    PMI's flagship reference. 7e shifted from process groups to performance domains.

// sources

Further reading

  1. [01]
    A Guide to the Project Management Body of Knowledge (PMBOK Guide), 7th Edition

    Project Management Institute (PMI) · 2021 · retrieved 2026-04

    PMI's flagship reference. 7e shifted from process groups to performance domains.