Explain different contractors discussed other contracts, Operation Management

Assignment Help:

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


Related Discussions:- Explain different contractors discussed other contracts

How make training programs more cost effective, Write a one/two-¬page discu...

Write a one/two-¬page discussion of training program development costs discussing how companies may find ways to make training programs more cost effective.

Combination layout, discuss the concept of a combination layout

discuss the concept of a combination layout

Explain what the average inventory be for this lot size, 1.What would the a...

1.What would the average inventory be for this lot size? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) 2. Determine th

The chair business uses price as major competitive factors, Management beli...

Management believes they can increase the price per chair by 10 percent in this new situation and improve profits by 10 percent. However, the sales department cautions that the pri

Define appraisal cost are associated with preventing defects, 1. The invest...

1. The investment a company makes in training employees to perform their duties and redesigning products and processes to improve them would be categorized as prevention costs. 2.

Explain what the earliest the project can be completed, The following table...

The following table shows the activity details of a project. What the earliest the project can be completed? Activity Days Predecessor ctivities A 4 - B 5 - C 3 A D 5 A E

Explain how does a leader differ from a manager, How does a leader differ f...

How does a leader differ from a manager and when would it be more advantageous to be a manager rather than a leader?

Explain how it affects the body in a negative way, A good thesis statement ...

A good thesis statement on the subject- Working Overtime: How it affects the Body in a Negative Way

Describe components of work execution, Problem 1: Describe components o...

Problem 1: Describe components of work execution. Description of work execution and components Problem 2: What is understand by MTBF? How this measurement will help

Difference between production planning and control, Difference between prod...

Difference between production Planning and Control Many people are of the view that production planning embraces both planning and control. In the broader sense, production pla

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