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 what is the maximum time in hours the machine, 2-10 minute breaks, ...

2-10 minute breaks, 1-20minute lunch, 1-10 minute clean up, restroom. What is the maximum time in hours the machine is available to run in a single shift?

Describe the legalese of bribery and bartering, Discuss the legalese of bri...

Discuss the legalese of bribery and bartering? Compare and contrast business ethics of two foreign countries.

Define how constraints in manufacturing are interrelated, Explain how const...

Explain how constraints in manufacturing are interrelated with a company's decisions regarding volume and variety

Presume that as a result of hr planning, Assume that as a result of HR plan...

Assume that as a result of HR planning, a mental hospital identifies a shortage of therapists but a surplus of case workers. Discuss the actions that you would take to address the

Meaning and definition of production management, Meaning and Definition of ...

Meaning and Definition of Production Management Production management is a stream of management that is associated to the production function. Production might be termed to as th

Describe you can conduct outside research to locate info, In a 1-2 page pap...

In a 1-2 page paper discuss the following case study by applying the knowledge you gained through this week's studies. If necessary, you can conduct outside research to locate info

Kaplan and norton balanced scorecard framework, Kaplan and Norton Balanced ...

Kaplan and Norton Balanced Scorecard Framework Kaplan and Norton (1992, 1993, and 1996) describe the concept of a 'balanced scorecard' that includes four categories of measure

Explain what is the role of safety stock in an mrp system, 1) Discuss the m...

1) Discuss the meaning of MRP such as planned order release and scheduled order receipts? 2) Many practitioners currently update MRP weekly or biweekly. Would it be more valuabl

Explain what does it mean to exploit a system constraint, 1) If an operatio...

1) If an operation uses a pull system and lean manufacturing techniques do they need to use forecasts? How about production schedules and shop floor control systems? Explain why/wh

Business ethics and corporate social responsibility, Explain the relationsh...

Explain the relationship among 'Business Ethics' and 'Corporate Social Responsibility' Ethics may be viewed as a set of moral principles that guide behaviour, based on what is

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