The Supplier Trap
Projects rarely collapse because of the “big risks” everyone sees coming. More often, it’s the quiet failures in supplier selection that bleed time, money, and confidence.
Where does it go wrong?
- Choosing based on familiarity, not capability.
- Ignoring financial stability – suppliers running out of cash mid-project.
- Overlooking capacity – a “yes” bidder already overloaded with other work.
- Weak due diligence on safety, compliance, or past performance.
The Root Cause
Supplier selection is often treated as an administrative tick-box exercise. But when the wrong partner gets through, the entire project inherits their weaknesses. Every delay, dispute, and defect traces back to that early procurement mistake.
One real-world example:
A client awarded to a subcontractor who looked competitive on price but had no real track record in projects of that scale. Midway, the supplier collapsed financially, leaving a £2m gap to re-let works and months lost on programme.
Smarter Selection, Stronger Projects
The best procurement teams:
- Prequalify with robust financial and capability checks.
- Use transparent scoring models – balancing cost, capability, and reliability.
- Look beyond the bid – at capacity, track record, and delivery culture.
- Treat supplier selection as risk management, not just paperwork.
Final Thought
The cheapest bid is often the most expensive mistake. Strong supplier selection isn’t about saying “yes” faster – it’s about protecting the project from silent risks.
