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 an industry, What is an industry? (a) Industry is a grou...

What is an industry? (a) Industry is a group of diverse businesses under common owners. (b) Industry is a group of firms whose products have same and similar attributes such

Analyzing layouts with computers, Analyzing Layouts with Computers Du...

Analyzing Layouts with Computers Due to the advent of computers and software faculties. Presently computers are used to design the facility layout. Digital computers are wide

Describe why managers should know about research, Q1. Explain why managers ...

Q1. Explain why managers should know about research. Q2. BrokenViolin956 Read the entrepreneur's dilemma and the questions that follow. Identify the legal issue(s) and apply

Explain corporate strategic alliance, Business-level, Corporate-level, and ...

Business-level, Corporate-level, and International Strategies Using the Internet, research about the following: • Globalization • International strategic alliances • Co

Compute the cpk for this machine, 1) C-Spec, Inc., is attempting to determi...

1) C-Spec, Inc., is attempting to determine whether an existing machine is capable of milling an engine part that has a key specification of 4+6 .003 inches. After a trial run o

Explain development of a strategic plan, What are the primary external orga...

What are the primary external organizational considerations for the development of a strategic plan? Which consideration is the most important? Why?

Describe how the input from other areas into pac, 1. What is one of the key...

1. What is one of the key elements of an effective PAC system? Why is this element so important? 2. Explain how the input from other areas into PAC and the feedback PAC provides

Explain employee types, After an all-night study session the day before the...

After an all-night study session the day before their last final exam, four first-year MBA students decide to stop for some much-needed coffee at the campus Starbucks. They arrive

Explain what would you recommend the company, What would you recommend the ...

What would you recommend the company (Rochem Ltd) should do?

Explain lawsuit against the vice president seeking payment, Soda Dispensing...

Soda Dispensing Systems Inc. (SDS) was owned by two shareholders, each of whom owned half the stock. One shareholder was president and the other was vice president. Their sharehold

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