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

Intermediate objective goals, Intermediate objective goals 1. Machine...

Intermediate objective goals 1. Machinery and Equipment: The objectives in the  area of machinery  and equipment  are divided into: Acquisition of machinery and  equi

Explain why employees steal property, Discuss what you think are FOUR (4) r...

Discuss what you think are FOUR (4) reasons why employees steal property (office supplies, petty cash, cheat on travel expense reports, parts/ equipment, embezzle money) from their

During the analysis of a process that was evaluated, What are some of the p...

What are some of the possible explanations for not finding any assignable causes

Explain american multinational business in a foreign country, What requirem...

What requirements should be recommended to represent an American multinational business in a foreign country?

Explain work in an information technology department, You are talking with ...

You are talking with another MIS 200student who is complaining about having to learn about the information systems development life -cycle (SDLC- Chapter 6), because he is not goin

Linear programming, what is the operation management in linear programming

what is the operation management in linear programming

Explain organizations achieving competitive advantage, Discuss the influenc...

Discuss the influence of the four focus areas for HR professionals on solving HRM related issues associated with organizations achieving competitive advantage.

Number of shiments and number of defective shiments, The quesstion is to de...

The quesstion is to develop a scattr diagram using total number of shiments and number of defective shiments. This is for Project management mgmt. can some one help me with this

Discuss about the holding inventory control systems, Discuss about the Hold...

Discuss about the Holding Inventory Control Systems. Holding Inventory Control Systems: Holding great levels of inventory enables an organisation to be extra flexible to

Explain lean relates to an organization being agile, a. Do you think lean r...

a. Do you think lean relates to an organization being agile? b. Would implementing lean into an organization lead to a competitive advantage? if yes, explain, how and what types

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