Detroit Vendors Wrestle With Proposed 10 Percent Cut

12/12/2011 08:54 am ET

By Nancy Kaffer

For some city vendors, the idea of a 10 percent reduction in payments proposed by Detroit Mayor Dave Bing is cause for alarm -- and a signal that doing business with the city, already notorious for late payments, is about to become even more challenging.

The city is targeting existing contracts, renewals and new contracts, Dan Lijana, a communications manager in Bing's office, wrote in an email to Crain's. The city has saved $3.5 million in the current fiscal year through cooperative purchasing agreements, rebidding contracts and consolidating or eliminating contracts, he wrote. The city will continue to use those tactics in the year ahead, he said.

Read more on Crain's Detroit Business

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