Describe a situation where you had to negotiate a change in scope or cost with a vendor or agency in the middle of a project. How did you approach the negotiation?

Situation

While organizing a company anniversary event, our AV production vendor informed us midway that the event's expanded program required additional LED screens not covered in the original contract, quoting a 40% cost increase.

Task

I needed to secure the additional screens to meet the event's technical requirements while keeping the overall budget close to the approved amount.

Action

I reviewed the contract for any scope flexibility, then met with the vendor to understand the cost drivers. I proposed a trade: we would reduce the stage backdrop complexity to offset the LED screen cost, and I reminded them of our ongoing partnership and potential for future projects. We agreed on a reduced markup of 15% extra instead of 40%, and I got internal approval to cover the remainder by cutting less critical décor items.

Result

The event ran flawlessly with the extra screens enhancing the program, and we stayed within 5% of the original budget. The vendor appreciated our collaborative approach and later gave us priority on another project.