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

Determine the wbs shown below, Consider the WBS shown below: 1.00.00 1.1...

Consider the WBS shown below: 1.00.00 1.1.0 1.1.1 1.1.2 1.2.0 1.2.1 1.2.2 If the total program costs $100,000 and 1.2.1 and 1.2.2 are each $20 K, then the cost of 1.1.0 is:

Assignment on erp jit, how to write a good assignment report on erp jit

how to write a good assignment report on erp jit

Explain the financial ratio analysis on harley davidson inc, What is the fi...

What is the financial ratio analysis on Harley Davidson Inc 2008?

Sequencing problem, what mean passing time is not allowed in sequencing pro...

what mean passing time is not allowed in sequencing problem in operation research

Describe what opportunities exist, What are Google's key resources and comp...

What are Google's key resources and competitive capabilities? What competitive liabilities and resource weakness does it have? What opportunities exist? What threats to its continu

Explain and identify the product subject to recall, The paper must be four ...

The paper must be four to five pages, excluding the title page and references page Address all of the following parts of this assignment 1. Visit the Consumer Product Safety

Explain important in work-center scheduling, Why is managing bottlenecks so...

Why is managing bottlenecks so important in work-center scheduling?

Discuss the factors affecting productivity increases, 1. Define productivit...

1. Define productivity both as a mathematical ratio and as a systems diagram?  2. Outline how the productivity of an organisation may be improved.  3. Discuss the factors aff

Explain participatory management style, Leslie Igles is being sent to Irela...

Leslie Igles is being sent to Ireland as the new manager of a local subsidiary of a U.S. firm. She has a participatory management style and is known for her ability to relate to th

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

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