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

Explain if a process is neither capable nor in control, If a process is nei...

If a process is neither capable nor in control, the appropriate first step is to _____. remove common causes redesign the equipment remove sources of special cause variati

Explain organization''s strategic direction, Why should HPT Practitioners c...

Why should HPT Practitioners care about the organization's strategic direction?

Explain organization culture importance to business success, Describe organ...

Describe organization culture. Provide a definition and explanation of its importance to business success?

Explain many positive things about ipads, We have discussed many positive t...

We have discussed many positive things about iPads, iPhones, tablets and Smart Phones, what are some negative things you have experienced with the device you use?

Explain why do some people gravitate toward management jobs, Why do some pe...

Why do some people gravitate toward management jobs as opposed to technical, labour jobs etc.?

Why communication is an important consideration in firms, Communication is ...

Communication is an important consideration in organizations, and a number of different constructs fit within the communication viewpoint. What types of leader communication attitu

Explain main parts of the operations planning control system, List and brie...

List and briefly discuss the five main parts of the operations planning control (OPC) system

Explain cost variance and schedule variances for each task, You are the pro...

You are the project manager for the following project which started Feb. 1st, 2009. It is now March 1sr, 2009. Prepare a monthly status report for February 2009, using the project

Determine the standard time, An 8 hours work measurement  study  in a plant...

An 8 hours work measurement  study  in a plant reveals the following : Units  produced= 320 nos. Idle  time = 15%  performance rating-= 120% . allowances  = 12% of normal  time. De

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