Dealings between contractors and vendors highly depend on the type services being offered in the deal. In this case contractors are the people who are hired by companies to do a certain work, while vendors are the people who sell the products to the contractors. Good relationship is enhanced by effective communication among the groups. Well established objectives and goals should be followed to avoid inconveniences and, in case of any changes, they should be communicated in advance. Before entering into any contractual relationships, the participants should ensure that each group is certified. Print. .Both parties have to get satisfaction, in this case there has to be mutual interdependence among the groups. Parties have to meet the contractual obligations where in case of a breach of the contract by one party, there are serious consequences. For example, some parties end up in courts of law due failure to honor the contractual obligations, forced to pay heavy fines which could have been automatically avoided (Voelz 187).
The type of relationship should be identified as not to confuse mutual relationship and business partners. The parties should draw a clear line between these two. Time also must be observed to avoid delay rendering services to the customers as this leads to loss of customer loyalty towards the services products offered. The standard of the products offered should strictly be observed to attract great profits by both parties, although, the quality should be in the line within the budget line. This reduces either overspending or underutilization. It ensures maximum utilization of resources without exhausting them. However the contractor or and the vendor should exercise even distribution of the efforts without disregarding the main client who has offered the contractor the job (Voelz 194).
No party should have a personal self interest in the deal during provision of the services. When this is discovered, both parties should communicate or even terminate the contract. Safety must also be considered and in case where any party is harm, there should be indemnity that is compensation must occur. This is measured depending on what extent the accident has caused the loss. Contractors must also be cost sensitive. Before procuring anything from the vendors, different vendors should be involved before deciding on whom to procure from. This is done to avoid unnecessary expenses. With this evident profit margins are seen. The prevailing market prices and conditions highly influence the relationship between the contractors and the vendors. For example, if the prices of the products just hiked after the contracts was signed, there is a high probability that the contactors will tend to disagree to pay the extra cost and, this can lead to fights and even stoppage of the contractors work (O'Leary, Rosemary, & Lisa 207).
The benefits of distinctively work relationships tend to be safer than the mutual relationships which most of the times is based on friendship. The mutual relationships tend to be violated due to the friendship or even family ties. There is honoring of the promises between the people who meet each other for business matters only. This is due to the fear of facing law in case of violation of the terms outlined in the contract. High quality products are offered as the parties barely know each other so need so to impress each other to retain the deal as it enables raising of revenue thus improved living standards (Voelz 201).
This relationship also comes in hand with some disadvantages. One of them is seen when one party decides to terminate the product without letting the other party know and fleeing leading to inconveniences. There are of low chances of credit facilities as the parties barely know each other. This causes to strains in the business sector or even loss of business opportunities. The reason know each as to why the relationship is classified as distinctively business only is because the parties don’t know each other well and they meet specifically for business. In this case all the agreements are laid down in writing for reference in case of any misunderstanding (O'Leary, Rosemary, & Lisa 207).
Work Cited
O'Leary, Rosemary, and Lisa Bingham. The Collaborative Public Manager: New Ideas for the Twenty-First Century. Washington, D.C: Georgetown University Press, 2009. Print.
Voelz, Glenn J. Contractors in the Government Workplace: Managing the Blended Workforce. Lanham, Md: Government Institutes, 2010. Print.
