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 why do resource constraints affect project results, Explain work br...

Explain work breakdown structure. Why do resource constraints affect project results?

Line balancing, what do you understand by line balancing what happens if ba...

what do you understand by line balancing what happens if balance

What seasonal relatives would explain this situation, The manager of a fash...

The manager of a fashionable restaurant open Wednesday through Saturday says that the restaurant does about 31 percent of its business on Friday night, 26 percent on Saturday night

Work measurement, Work Measurement: Work  measurement  goes  hand in  ...

Work Measurement: Work  measurement  goes  hand in  with  method  design. Whereas the method design  are directed towards the study  of the components of a single or multiple

What strategies would be consider for lowering your costs, Type your questi...

Type your question here Four-step process for setting a price on a product, and using 2,000 custom-printed t- shirts as your product (at a cost of $12.25 each to produce), calculat

When are the holding costs raised, When are the holding costs raised? H...

When are the holding costs raised? Holding cost rises while the size of order rises. It is since a higher level of average stock will be kept during the year. Thus holding cost

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

Explain economic aspect of the triple bottom line concept, A firm's busines...

A firm's business practices toward its labor force pertain mainly to the economic aspect of the triple bottom line concept.

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