A vendor change order is much higher than expected. How should we review it?

Unexplained change pricing

Ask for the scope, assumptions, effort, rates, and consequences supporting the price, subject to the contract's terms. Compare alternatives without assuming that disagreement proves overcharging.

What to do now

  1. Confirm the requested change
  2. Review the supplier's pricing basis
  3. Assess alternatives and impact of deferral
  4. Use the authorized commercial decision route
Recommended action flow for unexplained change pricing: Confirm the requested change then Review the supplier's pricing basis then Assess alternatives and impact of deferral then Use the authorized commercial decision route. Escalate when the price or entitlement is materially disputed.

When to escalate

Escalate when

The price or entitlement is materially disputed.

Who decides

The authorized procurement or commercial owner

Example

A change quote separates development, testing, and deployment effort so the parties can review its basis.

Mistake to avoid

Approving the amount simply because the project is already late.

Prevent a repeat

Compare supplier evidence with agreed obligations; refer contract interpretation and remedies to qualified owners.

Suggested ApprovedFlow setup

  • Vendors
  • Documents
  • Tasks
  • Approvals

Keep supplier commitments and evidence linked to the project, assign follow-up work, and route commercial decisions to authorized owners. See the platform

Related cases

Practice references