Revise the Supplier Agreement or Relationship

There are a number of conditions that occur throughout the life of the supplier agreement that warrant changing this agreement or changing the project’s relationship with the supplier. These conditions include changes in the business environment of the project or supplier; availability of new products in the market that can better satisfy the needs of the project; and deficiencies in supplier performance, project

When the level of risk associated with satisfying the supplier agreement increases significantly, the project may make changes to the supplier agreement or to the relationship with the supplier. When the supplier’s level of risk is low, the project should be careful not to impede the execution of the supplier’s processes. This situation may also warrant making changes to the supplier agreement to minimize intervention.

• Review the supplier agreement to ensure it accurately reflects the project’s relationship with the supplier and current market conditions.
• Revise the project’s defined process or work products as necessary to reflect changes in the project-supplier relationship.
• Ensure that the supplier’s processes or work products are revised as necessary to reflect changes in the project-supplier relationship.
• Coordinate changes to the supplier agreement with the supplier to ensure that changes in the project-supplier relationship are understood by both the project and supplier. Make any adjustments that affect requirements in the supplier agreement through official channels.
• Adapt the supplier agreement or relationship to better match the supplier’s performance based on the results of risk evaluations.
• Communicate to project members and other relevant stakeholders all changes to the supplier agreement and to the project-supplier relationship