How do you deal with a vendor whose final invoice is substantially higher than their initial estimate?

Our reader poll today asks: How do you deal with a vendor whose final invoice is substantially higher than their initial estimate?

• I just pay the invoice 3.22%
• I negotiate with them to get the final price down a bit 34.41%
• I offer to split the difference between the estimate and final bill 6.42%
• I offer to pay slightly more than the initial estimate 8.71%
• I hold them to the initial estimate they provided 47.24%

Holding them to the estimate. Almost 50% of you push vendors to stick to their initial estimate in situations where the final invoice is much higher than the estimate. The rest of you work toward negotiating the final bill back toward the estimate with varying degrees of pressure. To avoid these situations in the first place, be sure the estimate is rigorous and accurate. Also make sure you fully understand it and what actions can trigger higher costs, like customization during the project, scope changes, delays, or personnel changes. You bear some responsibility in these situations too – ensuring the estimate is as accurate as possible before signing off on any work.

– Mike Figliuolo at thoughtLEADERS, LLC

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These results were originally a SmartPulse poll in SmartBrief on Leadership which tracks feedback from more than 240,000 business leaders. Get smarter on leadership and sign up for the SmartBrief on Leadership e-newsletter.