Describe contract type selected was incorrect, Operation Management

Assignment Help:

This case study will be discussed and reviewed in the Case Study discussion question for the week. Post your responses to the questions at the end in the Case Study discussion question this week. You are the project manager for a new multi-million dollar building renovation for your organization. The company needs to maximize the space that they have and the best approach is to do a staggered build out in order to better maximize the space in the existing building. You feel that the best approach was to negotiate with multiple contractors on a fixed price contract. Different contractors discussed other contracts with you, particularly ones to address the current market fluxuations in the raw materials market. You ignore those other companies and settle on an agreement with a local company, who is willing to accept your terms for a fixed price contract. You find out that a few weeks into a four month project that raw materials have increased by 250%. The contractor meets with you to discuss a price increase for the project. You have already committed a fixed price to the company and there is no contingency in the budget. The contractor advises that he will go bankrupt if he is forced to finish the project at this price and so the contractor sends you notification that they are stopping work on the project. Word of the work stoppage flies through your company and your boss calls you to his office for an update. You explain what has happened but he feels that you are responsible for allowing this to get to this point. You are told by your boss to work something out with the contractor and to go into the negotiation with a good plan on how to mitigate the costs. Upon reflection of this situation, consider the below questions and how might this situation been different with a different contract approach Do you feel that the contract type selected was incorrect? What kind of abuses did you identify? What kind of positive or negative incentive could have improved this situation?


Related Discussions:- Describe contract type selected was incorrect

Explain competitive strategy relate to value chain structure, How does comp...

How does competitive strategy relate to value chain structure?

Explain the organizational structure that results, Describe the organizatio...

Describe the organizational structure that results from each of the different bases of departmentalization?

What is lost while no feedback is required, What is lost when no feedback i...

What is lost when no feedback is required? What can an employee do to change this situation when it is a specific company policy NOT to provide feedback? Name two possible re

Explain the importance of performance appraisal, Explain the importance of ...

Explain the importance of performance appraisal. Significance of performance appraisal: This is helpful in operational decisions of personal management relating to pay rais

Performance measurement in organisations, Performance Measurement 1. A...

Performance Measurement 1. An effective performance measurement framework rarely is derived from one single approach.  2. Each of the methods outlined comes with its own un

Group technology - cellular manufacturing system, Group Technology- Cellula...

Group Technology- Cellular Manufacturing System In group technology/ cellular manufacturing (CM) machines are grouped into cells and the cells functions somewhat like a produc

What percent compounded annually, How much should be deposited now at 8% co...

How much should be deposited now at 8% compounded semi-annually to make a possible equal withdrawal of $5,000 at the end of each year for 5 years, the first withdrawal to be made 1

Explain what quinn refers to as the managerial classic trap, 1. Explain wha...

1. Explain what Quinn refers to as the managerial 'classic trap' in strategy formulation.  Answer: Quinn (1988) criticises those who see strategy formulation and implementation

Explain must prepare a budget for a change initiative, Change plans must co...

Change plans must consider the use of a companys resources to maximize potential and ensure success. Financial resources are a definite consideration for any plan or objective. I

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd