How would you address a vendor's sudden request to change contract terms at the last minute?

If a client wants to change the parameters of an existing contract, I would advise them that a new contract would need to be drawn up with the new terms. I would also tell them that there would be additional administrative fees for the new contract. Also, their deadline would change.

This requires a balanced approach. One way to handle it is - 1. Quickly review the requested changes to understand their implications by assessing how these changes align with your business objectives and other contractual obligations. 2. Schedule an urgent meeting with the vendor to discuss the reasons behind their request. 3. Involve relevant internal stakeholders to get their input and ensure the changes won't negatively affect 4. Document all discussions, proposed changes, and decisions made during the negotiation process. 5. Negotiate with the vendor to reach a compromise that satisfies both parties. 6. Have your legal team review the proposed changes to ensure compliance with laws and regulations and to identify any potential risks.

Always try to see the rationale that the vendor is communicating to you for the urgent change of contract terms. It has to be reasonable and legally valid. It has to be also in line with all the business discussions by both parties and also we should analyse what would be its repercussions in the future.

Il faut communiquer avec le vendeur, comprendre la teneur et l'impact des modifications souhaitées sur la relation contractuelle et s'assurer que cela ne nuit pas à nos objectifs.

Consider whether this was due to an oversight by your documentation in the first place. If not materially legal or has financial consequences advise another time to provide for these new changes to avoid un necessary delays

Il faut recourir une analyse juridique pour s'assurer que les changements souhaités respectent le cadre règlementaire existant.

Before negotiating changes, it's essential to review negotiation history of the original contract. This will refresh our memory on the agreed-upon terms, as well as the wins & losses from previous negotiations. In a recent case with a vendor package, the supplier sought a change in payment terms at a late stage to alleviate cash flow issues. I recalled that we had previously compromised on cost over schedule at the time of order placement. I leveraged this knowledge to negotiate a reduction in cost, citing lower commodity prices since PO placement, and adjusted the payment terms to meet supplier's request. This approach proved advantageous for both parties, as it alleviated their cash flow concerns while achieving a cost reduction for us.

Recognize the needs and goals of the vendor first. Establish rapport and discover points of agreement by actively listening. Offer answers that preserve the integrity of your project while taking into account the needs of both sides. Know your boundaries and be ready to make concessions. To prevent future conflicts, carefully record all conversations and agreements. Revnue and other similar tools support the tracking of these modifications, guaranteeing openness and convenience for all parties.

Once the changes have been discussed and decided the most challenging part is where they have to be well drafted with the correct understanding and is easily comprehensible to all parties. The document should crystal clear on all the changes discussed and the same can be done through amendments or addendums to the main agreement.

If the Vendor terms are updated, it is the obligation of the legal team to communicate the changes to all the other teams so that the new terms can be implemented in the intended way. The change in vendor terms can be in goals and objectives, additional scope of work, extension of contracts etc. Hence, once these are rightly communicated then implementation becomes much more simpler and hassle free.

Post all changes are implemented, it is significant that the relationships are well maintained with the vendor as the client will start taking the services and hence there has to be smooth and transparent communication. The objectives are well discussed and hence all parties should work together towards achieving those objectives.