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This would vilolate all aspects of ethical business codes. If the service provider offer a better quote only after losing the bid to another company, then they have failed to read your original scope of works.
You must answer this question -Do you really wish to do business with type of company?
If the company had been ethical and upfront then they would have offered the winning bid.
I have been in this business for many years , and so yes I have seen other so called business professionals ruin their crediability by accepting a lower bid post award of contract.
So I would urge you to decline the offer politely, and state they will be other opportunities for the relevent company to shine in the future.
Professionally for a reputed company its not good for their reputation to consider that bid after finalizing the contract with another company,mean while they can speak to the service provider that they must have submit the bid before closing it,so that they will get better deal in future.
For next bid Company might consider them or if the existing contract fails to fulfill the requirement they can void it and start negotiating with service providers again.
A company with a good product and great sales people do not use that tactic because both speak for themselves.
Contract is the result of tendering process which resulted in receipt of technical and commercial offers the best of them wins the the contract.So we can not suspend the contract if we receive better offer immediately after issuing it. The question is why the service provider who offered best prices didn't participate during the tendering process ? He should have either participated or declined with justification for decline. If the service provider is new , then a prequalification process shall apply to him to qualify him in coming tenders. This is the best reaction to this case.
Counsel the client about your companies strong points in service levels and stick to your own contract.
explain the issue and demand a better service so you will keep business with him or you will have to terminate your contract
Don't worry, Keep remember in your mind.Every day of job is last day of job in any company.
Attach to emotions with passion/work instead of company. Than, we can face any type of situation.
This think will not happen if so as a professional approach should be bounded by business ethics and commit to your contrct sign.
You have to honor the offer of which you received first since you already finalize the contract even if later you received a better offer from other service provider. Perhaps later when the contract is finished then you may negotiate to your existing provider for a better deal or discuss the provision of contract to include in the service of which other service provider offered initially and if they agree on the terms then you may continue doing business with them. Otherwise, you will inform them that you a want to discontinue or will not renew the contract with them and say that your company found service provider with better offer.
It is unethical to consider any offer by any service provider once having finalized the contract with another supplier, and there is a complete big NO to look back into the contract already finalized. However, such an instance should be used as an opportunity to gain some insight into the procurement having already finalised that may help future procurements and give better grounds for future negotiations. It is advisable to analyze and understand as to how the service provider is able to submit a better offer. Without giving any promise, the service provider may be requested to furnish justification of the offer. Analysis of the justification should be done strictly in respect of the scope of services stipulated in the contract and without any bias. Its important to know if there is any temporal or regulatory or market change involved, making the offer look better or there is any lack of understanding at the end of the supplier giving you a better offer? Risk assessment varies tremendously amongst service providers. Conclusion thus drawn from such an exercise will help the organization in future procurements.
I will keep the another service provider details in our database and when it comes to next order, I will negotiate including this supplier also
