Lesson 18: The Vendor That Lied to Me – How to Handle Vendor Deception and Overpromises

By Tom Jones, IT Project Manager

Welcome back to my 21-part series on lessons learned throughout my IT project management career. Today, we’re tackling a problem that every IT leader will face at some point—vendors who lie, exaggerate, or fail to deliver on their promises.

Whether it’s a software provider claiming “seamless integration” or a consultant who insists they have “deep expertise,” vendor misrepresentations can derail projects, waste money, and damage your reputation.

In today’s lesson, I’ll cover: ✅ How a vendor’s false claims nearly destroyed one of my projects. ✅ The biggest mistakes companies make when dealing with vendors. ✅ How to spot red flags before signing a contract. ✅ How ezRACI helps hold vendors accountable.

The Vendor That Promised the World—And Delivered a Mess

In 2021, I was managing an ERP implementation when we signed a contract with a vendor that claimed:

• Their platform had 100% compatibility with our existing systems.

• Deployment would take six weeks with minimal configuration.

• Their team had extensive experience with similar rollouts.

Sounds perfect, right? Wrong.

• Their “plug-and-play” integration required months of custom development.

• Critical features were missing, requiring expensive add-ons.

• The vendor’s “experts” turned out to be junior staff with no real experience.

We burned six months and millions of dollars before finally pulling the plug and switching vendors.

That’s when I learned: Vendor claims mean nothing without proof.

The 5 Biggest Vendor Management Mistakes (And How to Avoid Them)

🚨 1. Trusting the Sales Pitch Without Proof

❌ What happens: Companies believe marketing claims without requiring real-world evidence.

✅ Fix it:

• Always demand a working proof of concept (PoC).

• Speak to actual customers (not just vendor-provided references).

• Require a trial period before committing to a long-term deal.

🚨 2. Not Getting Performance Guarantees in Writing

❌ What happens: Vendors promise results but don’t put them in the contract.

✅ Fix it:

• Include service-level agreements (SLAs) with clear performance expectations.

• Add penalties for missed deadlines and non-performance.

• Ensure support response times are contractually defined.

🚨 3. Failing to Identify Hidden Costs

❌ What happens: Vendors offer low initial pricing but charge extra for features you assumed were included.

✅ Fix it:

• Demand a full cost breakdown, including add-ons, support, and training.

• Clarify what’s included in the base price versus additional fees.

• Compare total cost of ownership (TCO) across multiple vendors.

🚨 4. Assuming the Vendor Knows Your Business Needs

❌ What happens: Vendors make recommendations without fully understanding your operations.

✅ Fix it:

• Provide detailed business requirements before evaluating solutions.

• Ask vendors to demonstrate their understanding of your industry.

• Involve end users in vendor demos to ensure usability.

🚨 5. Poor Vendor Accountability & Oversight

❌ What happens: Companies sign contracts and then fail to track vendor performance.

✅ Fix it:

• Assign a dedicated vendor manager to oversee performance.

• Use a RACI matrix (via ezRACI) to define who approves vendor deliverables.

• Conduct regular performance reviews to catch issues early.

How to Handle a Vendor That Fails to Deliver

If a vendor overpromises and underdelivers, here’s how to handle it:

Step 1: Document Every Issue

• Keep records of missed deadlines, failed integrations, and performance problems.

• Compare actual performance against contractual obligations.

Step 2: Escalate Within the Vendor Organization

• Contact higher-level executives—sometimes sales teams make promises without informing delivery teams.

• Demand an escalation plan and corrective actions.

Step 3: Renegotiate or Exit the Contract

• If the vendor fails to meet SLAs, use penalty clauses to recover costs.

• Consider switching vendors if recovery is unlikely.

Step 4: Learn & Improve Future Vendor Selection

• Refine your vendor evaluation process based on lessons learned.

• Use ezRACI to track vendor accountability across all projects.

How ezRACI Helps Prevent Vendor Failures

Vendor misalignment happens when accountability isn’t clear. That’s why I use ezRACI to:

✅ Assign ownership for vendor selection, performance tracking, and approvals. ✅ Document service expectations so vendors can’t shift blame. ✅ Monitor contract compliance to ensure vendors meet their commitments.

If you’ve ever been burned by a vendor, ezRACI can help you hold them accountable and prevent future failures.

Final Thoughts: Trust, But Verify

The biggest lesson I’ve learned? Vendor trust should be earned, not assumed.

✔️ Demand proof, not promises. ✔️ Put performance guarantees in writing. ✔️ Track vendor accountability with structured tools like ezRACI.

Next time, in Lesson 19: The Politics of IT Project Management, I’ll share how I navigated corporate politics, power struggles, and executive egos to keep projects on track.

Disclaimer: This blog is written from the perspective of Tom Jones, a fictional IT Project Manager, and is intended for informational and educational purposes. While based on real-world project management principles, all anecdotes and characters in these posts are entirely fictitious. Any resemblance to actual persons or events is purely coincidental. The blog also references ezRACI, a project management tool designed to help teams succeed in project execution. However, these opinions are solely those of the fictional character and do not constitute an official endorsement.