I've seen this type of requests many times even for large and strategic deals. This type of ask is primarily seen in Govt sponsored deals. One of the reason for such ask is to restrict Supplier's mark-up and for transparency, gain share etc. I think you should first ask Customer why they would like to see Supplier's internal costs. Are they going to compensate the Supplier if Supplier can't achieve the estimated margin?
If they are looking for transparency, you can submit the break-up of your Charges (Y-o-Y/M-o-M, FTE cost, Non FTE cost, break up of Non FTE costs etc.) and also the Y-o-Y resource loading (FTE) if that helps. For submission, you can fill in the relevant portions of the Price Form where Charge needs to be mentioned leaving cost details blank and add assumption that you would like to initiate the discussion on cost details in the next phase. Hope they will not disqualify you for not providing the cost details. I believe if your price is competitive and solution helps Customer achieve their business goals then definitely Customer will shortlist you for the next round unless its a Govt sponsored deal and it is one of the qualifying criteria to submit the cost details.
In principle, your response sounds correct. Altering the terms unilaterally after award may indeed represent a material change, though of course you will need to make a prompt assessment of the nature and impact of the changes.
From your post, I get the impression that the Ts&cs are being driven by the consultant - but is that the case? Does the owner mandate the 'standard' and have they made the alterations - perhaps a result of current market conditions and experiences? Understanding the source and rationale behind the changes may be important in determining how and where you push back.
Of course you may want to revert on specific impact - for example, does this affect your price or delivery commitments? You may also want to negotiate some of the altered terms - for example, if risk allocation has shifted. But another response could be to take the position that this opens up more general negotiation and that if there are terms they want to change, you also have some changes you'd like made.
If these alterations were inspired by the consultant, they may back down because they will perhaps not want to explain to their client why this delay is occurring (especially if they made a mistake in the initial terms that were attached). But if the origin is the customer, you may need to be more cautious, especially if you do not have an existing or strong relationship.
Hi Uwe, a couple you might want to consider depending on the situation (e.g., are consultants performing in staff aug role or doing true short-term consulting projects) might be: 1.) retention of key personnel; 2.) attrition / turnover; 3.) onboarding time (much of this is client-dependent); 4.) required training required before billing starts.
• SimCorp A/S
You can also add customer escalations for individual performance issues. If the consulting project has delivery responsibility at end of project on T&M, then SLA can be that vendor's actual efforts deviation should not be more than 10% of the initial estimations. Or similar others on performance or outcome based.