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 multifactor productivity, The following table shows data on the ave...

The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $15, the overhead rate is 1.0 times labo

Describe leadership training and development, Training and Development -Sug...

Training and Development -Suggestions on how to write 1. Internet appeal how would you go about do that for fundraising 2 Print Advertisement 3. Special Events

Describe why firms conduct marketing research, Why do successful firms cond...

Why do successful firms conduct marketing research for their product and services?

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 the working of employees in flexible organisations, Explain the wor...

Explain the working of employees in flexible organisations. Working of employees in flexible organisations: • Production workers may be needed to take on indirect tasks as l

Assignment 2000 words, Assignment EITHER A. Practical application of concep...

Assignment EITHER A. Practical application of concepts in a local organisation • You are required to analyse and evaluate a key aspect of operations management covered in this subj

Explain what are the factors that affect employee motivation, Recruitment i...

Recruitment is of little use if an organization cannot retain key employees. Therefore, it is critical that organizations properly motivate and reward their employees. What are t

Explain role of the small business administration, Analyze funding opportun...

Analyze funding opportunities for small businesses, including the role of the Small Business Administration (SBA). Then, evaluate the effectiveness of these funding opportunities i

Explain your personal professional strategy as globalization, What is your ...

What is your personal professional strategy to remain competitive in this environment as globalization increases?

Location decisions, the globalization and geographic dispersion of operatio...

the globalization and geographic dispersion of operations

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