At NCI Building Systems, a $2-billion manufacturer of construction products, we are in the process of overhauling data and voice communications to support expanding bandwidth demands as we grow both organically and through acquisitions. Under our previous contracts, we couldn't leverage our size, so we put our telecom services out to bid. Here are some lessons we have learned in the process of developing and negotiating our contracts.
Control the request-for-proposal (RFP) process. Insist that the bidders use your format to provide costs and service-level specifications. Otherwise it is difficult to compare one bidder's proposal with that of another. Bidders may assume a higher or lower level of service or may not include all costs. Also, don't assume that the RFP or a verbal agreement will carry over to the contract. Only the written contract counts.
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