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

Process technology, Explain how process technology is chosen for an operati...

Explain how process technology is chosen for an operation.

Operation functions of an organization, Operation functions of an Organizat...

Operation functions of an Organization Case study IKEA is the most successful furniture retailer ever. With 276 stores in 36 countries, it has managed to develop its own s

Explain work is a combination of precision machining, Layout Homework Probl...

Layout Homework Problems 6. Avalanche, Inc. is a manufacturer of premium snow skis. The work is a combination of precision machining and skilled craftsmanship. Before completion, s

Make a fictional company and develop a memo to communicate, Create a fictio...

Create a fictional company and develop a memo to communicate the importance of a business continuity plan to the board of directors. The completed assignment should be at least 25

Explain the service organization worry about world class, Why should a serv...

Why should a service organization worry about being world class if it does not compete outside its own national border? What impact does the Internet have on this?

Simplex method , Q3. Solve the following Linear Programming Problem using S...

Q3. Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 4 X1+ X2 2 X1, X2 0

Operations challenges, Task 1 Read: Chapter 1 of the core learning material...

Task 1 Read: Chapter 1 of the core learning material and supporting text book chapters which relate to Operations Management. Choose an organisation with which you are either in

Explain estimating the mean height of a sample of seedlings, A biologist re...

A biologist reports a confidence interval of (2.0,2.4) when estimating the mean height (in centimetres) of a sample of seedlings. What is the estimated margin of error and the samp

What are the arguments for as against social responsibility, What are the a...

What are the arguments for and against social responsibility on the part of businesses? Please in addition, which set of arguments is more compelling?

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