Preventing Invoices from Non-Performing Vendors
Question
A vendor was removed from a company due to non-performance but continues to submit invoices for work that was not completed.
Which of the following should the project manager do to stop the vendor from sending invoices?
Answers
Explanations
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A. B. C. D.A.
The correct answer is A. Draft a C&D letter and send it to vendor.
Explanation:
The situation described in the question suggests that the vendor is engaging in unethical behavior by submitting invoices for work that was not completed. This is a serious issue, and it needs to be addressed promptly. The project manager should take the following steps to stop the vendor from sending invoices:
A. Draft a C&D letter and send it to the vendor: A Cease and Desist (C&D) letter is a legal document that instructs the recipient to stop engaging in certain behavior, such as sending invoices for work that was not completed. This letter can be drafted by the project manager or the legal department and sent to the vendor. The letter should clearly state the reasons for the C&D and include a deadline for the vendor to respond.
B. Review the MOU with the vendor: The Memorandum of Understanding (MOU) is a document that outlines the terms of the agreement between the company and the vendor. The project manager should review the MOU to ensure that the vendor is not entitled to payment for work that was not completed. If the MOU is unclear, the project manager should consult with the legal department.
C. Ask the legal department to draft a non-complete agreement for the vendor to sign: A non-complete agreement is a legal document that prohibits the vendor from engaging in certain activities, such as submitting invoices for work that was not completed. This type of agreement can be used in conjunction with the C&D letter to ensure that the vendor understands the consequences of their actions.
D. Meet with the finance department to prevent the vendor from sending invoices: The finance department can work with the project manager to set up a process for reviewing and approving vendor invoices. This can help prevent invoices from being submitted for work that was not completed. However, this option should be considered as a last resort, as it does not address the root cause of the problem.
In summary, the most appropriate action for the project manager to take in this situation is to draft a C&D letter and send it to the vendor. This will send a clear message to the vendor that their behavior is unacceptable and will not be tolerated. The other options can be considered as additional measures to prevent similar issues from occurring in the future.
