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 appropriate to use mrp and just-in-time, Discuss the market and man...

Discuss the market and manufacturing requirements that make it appropriate to use MRP and Just-in-Time.

Explain to inspire maximum performance, Many writers have stated that effec...

Many writers have stated that effective objectives should be- A. Broad - to cover many dimensions of the business B. Measurable - to track progress C. Unachievable - to in

Explain what is the productivity measure, A hamburger factory produces 40,0...

A hamburger factory produces 40,000 hamburgers each week. The equipment used costs $5,000 and will remain productive for 4 years. The labor cost per year is $9,500. a. What is t

Logistics Management, What modification would you suggest in enhancing the ...

What modification would you suggest in enhancing the existing logistics system

Explain how is production levelling related to 5s, How is production levell...

How is production levelling related to 5S and Value Stream Mapping?

Define one attribute or capacity of servant leadership, Write a 500-750-wor...

Write a 500-750-word paper analyzing emerging leadership theories. Address the following questions and concepts: 1) Describe one attribute or capacity of servant leadership and

Definitions of productivity, Definitions of Productivity 1. Pro...

Definitions of Productivity 1. Productivity is the relationship between output generated by a production or service system and the input provided to create the output.

Initiate an organizing campaign for the technical employees, 1) Company A w...

1) Company A wants to discourage unionization through the United Technical Workers of America. True or False: In order to do so, it can initiate an organizing campaign for the Tech

Explain effectiveness change as an organization grows, The __________ _____...

The __________ ____________ ___________ approach to success suggests that measures of effectiveness change as an organization grows. Answer

Explain consideration doing business in china, I need an article with answe...

I need an article with answers to the following: Consideration doing business in China. You are an American company wanting to expand into China. Your management has asked you to d

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