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Chapter 21. Communicating with vendors > Rejecting a vendor’s contract proposal

Rejecting a vendor’s contract proposal

Rejecting a contract proposal is always difficult. The key to rejecting a contract proposal without alienating the vendor is to focus the rejection on the contract itself and not on any external or personal issues. Your goal is to maintain open communication with the vendor because even though the vendor did not win this particular contract, you might want to do business with this vendor in the future.

When informing a vendor that his contract proposal has been rejected, focus on the positive aspects of the situation. Mention what was good about the proposal before explaining what factors caused the contract to be denied. Thank the vendor for submitting the contract proposal, and express an interest in doing business with him at a later date.


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