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 how long is each production cycle, Your company manufactures turbin...

Your company manufactures turbine blades for engines in production batches for each type. For one type of blade, the A39T, you have an annual demand of 10,000 units. It costs you $

Process adjustment and process capability, Process Adjustment and Process C...

Process Adjustment and Process Capability Process adjustment In the event of the process veering towards non-conformance as a result of variables which are not inherent t

Explain what factors make up strategic process, Discuss the following quest...

Discuss the following questions in relation to strategic management: • What factors make up this process? • How important is it to change, and what criteria determine the cha

Project organisation - operations function, Project Organisation - Operatio...

Project Organisation - Operations Function The project system is a special category at the low-volume end of the spectrum. This entails the execution of many interdependent pa

Explain how can advertisers use the vals information, How can marketers use...

How can marketers use the VALS information to serve consumers better? Name five types of products or services for which the VALS information would be particularly useful. Explain.

Explain fishbone diagram conflict, Activity Instructions There are two part...

Activity Instructions There are two parts to this assignment. Part 1: Revise the previous flowchart you created based on any new or different information you gleaned during the las

Japanese firms used the which concept, Q All of the following are responsib...

Q All of the following are responsibilities of operations managers except Question options: 1) acquiring financial resources 2) managing inventories 3) planning production 4) sched

Gravity center of method, hello , we need to news of practical example of c...

hello , we need to news of practical example of company''s gravity of method

Explain how might superior benefit from using e-catalogues, Bill and Farrah...

Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers. Both Bill and Farrah have been assigned to work on two product

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