Blindly relying on Vendor Quotes for Estimates...!!!
Most of the cost estimates in a project go wrong because we totally rely on vendor quotes and three quotation system instead of doing a detailed Item Rate Analysis for indivudal items of work.
By relying on a vendors estimate blindly, the following risk components are on our head :
- Lack of vendors clarity or perception on scope and specification
- Lack of vendors knowledge on market trends
- Lack of vendors knowledge on the inter dependcies of various activities in the project.
- Lack of vendors knowledge on the main contractual terms and condition set between you and client
- Vendor may quote unrealisticallly low just for the sake of winning the order and then stop performing later.
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