Buy the noun. Negotiate the verbs later.

The winning supplier had quoted a pump. The other suppliers had made the expensive mistake of quoting a pump that would arrive, connect to the system and move water. These unnecessary verbs had damaged their competitiveness.

Our supplier's price included the pump at the supplier's premises. Transport was extra. Unloading was extra. The connection kit was extra. The kit contained the fittings needed to connect the pump, which was a surprising development for a product marketed as a pump.

Commissioning was offered as a premium service. The alternative was to switch it on and discover which exclusions had moving parts.

Keep the comparison pleasantly incomplete.

A fair comparison would bring every offer back to the same working result. That requires somebody to read scope, assumptions and exclusions. It also risks making the lowest number stop being the lowest number, an outcome for which the award presentation has no slide.

THE FIRM’S WORKING MODEL

The SoftBoulders bid comparison

At contract awardLowest initial price

One pump, conveniently located at someone else's factory.

At first useful operationPrice still developing

The same pump, plus transport, connections, installation, testing and a meeting about responsibility.

Our procurement method compares the first number. The project eventually has to pay for the complete sentence.

We recommend preserving the original award value in a prominent cell. Put later costs on separate sheets with names such as Site Readiness, Interface Resolution and Unexpected Expectations. The workbook now contains the total cost. The award slide does not.

Savings require custody arrangements.

Procurement owns the saving. The project owns the missing parts. Operations owns the inconvenience. Maintenance will eventually own the pump, provided someone finds the manual. This arrangement creates exceptional accountability: every consequence has an owner, and no owner has the whole consequence.

When the project engineer asks why the more complete proposal was rejected, explain that its supplier should have been more commercially competitive. By including the work, they denied the organization a valuable opportunity to discover it gradually.

Celebrate before the invoice sequence matures.

The supplier has behaved impeccably. Every excluded item was excluded. Every additional charge corresponds to an additional requirement, such as the requirement for water to emerge from the pump. The contract is being honored with devastating precision.

Our final recommendation is to hold the savings celebration immediately after award. Wait until commissioning and the room becomes crowded with people who have receipts.

The commemorative plaque should read Lowest Original Price. We can supply one at an exceptionally competitive rate. Engraving is available separately.

Inspect our methodology Back to the journal