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

Computer aided design., Computer Aided Design is one of the techniques used...

Computer Aided Design is one of the techniques used by Regal Marine in manufacturing of boats. With the aid of exapmles, critically discuss five (5) techniques that are important t

Define ethical responsibilities and social responsibilities, Explain the di...

Explain the difference between ethical responsibilities and social responsibilities of a manager. Please in you own words.

What unique challenges do research provide for km, Critical thinking questi...

Critical thinking questions: what unique challenges do research and development labs provide for KM implementation? What is the benefit of MITRE's evolutionary approach to KM?

Explain quantitative risk so important in risk mitigation, Why is quantitat...

Why is quantitative risk so important in risk mitigation? Explain how you have seen this in action in life or in your organization.

Layout, disconnected or functional layout

disconnected or functional layout

Partial factor and total factor productivity, Consider - a small manufactur...

Consider - a small manufacturing company which produces high quality furniture has provided the following data:                                                                 2

Explain what pay level does the efficiency wage predict, What pay level doe...

What pay level does the efficiency wage predict? Does the theory accurately predict organization behaviour? Why or why not

Explain employee rights guaranteed in the union contract, In return for emp...

In return for employee rights guaranteed in the union contract, union employees agree to all of the following except to: A. abide by the employer's work rules. B. follow supe

Describe ethical responsibilities, Explain the difference between ethical r...

Explain the difference between ethical responsibilities and social responsibilities of a manager. Please in you own words

Define personal selling techniques be applied at target, How can personal s...

How can personal selling techniques be applied at target? Provide specific examples to support your response.

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