Project management homework help

Running Head: CONTEMPORARY PROJECT MANAGEMENT 6

Contemporary Project Management

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1. Using the ideas in Exhibit 13.2, speculate on what activities, supplies, or services could be contracted out.

Generally an activity that can be contracted out is that for a project team to be assigned other activities that will cost less in the overall cost of production. The service provider in project procurement is normally referred to a seller due to the roles he or she performs therein. On the other hand, the service requester in the project procurement will be referred to as the purchaser or a buyer. In the project procurement, a project team has a key role to perform. A project team has the responsibility of determining the best project activity can be met when a company decide to outsource. They also determine the set of activities which can be performed by the project team in the course of the project implementation. However these decisions that a project team makes herein is based on evaluation of the pros and cons of outsourcing the activity as far as cost is concerned, demand analysis, performance control and time. True to speak, an activity would only be outsourced by a firm only if the cost of production of the activity from the company is high above that if it was produced elsewhere. Outsourcing would be carried out if it takes the entire focus of a project team such that other activities are left stagnant. (Kloppenburg, pg.467) An activity could also be outsourced if non in the project team have skills and knowledge to perform that activity.

2. Create a request for information for one portion of the project work that could be contracted out.

Comfort Media Inc.

Request for Information (RFI).

Comfort Media Inc. is looking for vendors to participate in the building of an extension of its stores department, a project initiated by the store’s manager after realizing that there is lack of storage space. The extension building is reported to be 6 floors and would occupy a land space of 200,000 square feet of construction. The project will be composed also of an open landscaping area which is projected to be 50 per cent of the total area of 100,000 square feet. The new stores extension will be composed of the state of the art storage facilities and enough facilities required for moving of goods in and out of the store, It will be a full equipped modern store. However, the prequalification criteria are;

The company to win the contract must have a prior good records in building and must be a body which is approved for construction purposes.

· A copy of completed project must be submitted in their portfolio.

· The firm must have a proper knowledge on how a store looks and materials to be used in construction thereby.

· They must have a strong financial standing.

· They must be accredited to a reputed agency.

· Adequate infrastructure required to complete the store should be available.

· Must have a previous similar construction experience.

· The firm must be committed to delivery of quality, cost control and schedule. This must be supported by references for authenticity.

· Must be committed to safety and safe working environment. (Kloppenburg, pg.461)

3. Using ideas from Exhibits 13.4 and 13.5, determine criteria you would use to select sellers for the portion of contract work under consideration.

For this project, I will be very categorical to choose only those sellers who have the required skill, knowledge, expertise and desired number of years’ experience. The seller however must all the necessary infrastructure required for the completion of the project. A good reputation should be compromised. The seller should mandatorily have a good reputation in his or her area of specialization and popular for the good works he has spearheaded. The price the seller will quote will be scrutinized against other seller prices. His prices must be highly competitive since this is one of the factor upon which suppliers are selected. The vendor must show the ability to execute the project till its successful delivery. Other factors that I will pay keen attention on will include such as design collaboration, supply flexibility, the viability of the supplier/vendor, supply quality among other factors. After checking on all these, the vendor will also pass through an interview where we will have a conversation to gauge his capability and his genuineness perhaps. By so doing, I will have selected a supplier/ vendor that best suits the construction of the store to my expectation without fear or doubt of failure. (Kloppenburg, pg.469)

4. Determine what type of contract you would use for this work and explain why.

For the successful delivery of this work, I would select is the Cost Plus contract.

Cost plus Incentive Fee. (CPIF). This is the type of contact that favors me most. This is because it refers to a contract in which a buyer have a legal obligation to reimburse the vendor for the vendor’s all kinds of allowable costs. He will then pay a vendor a fee if they a have actually meet the performance standards and criteria. The agreed criteria can be for a performance, cost or say schedule. This contract if favorable to me because it will help ensure that things are done as per the agreed. Moreover it will also ensure that the project has been delivered in good time without all any disruptions. Under this contract, the vendor will maintain a proper record of all the material and receipts of various materials used in the construction. This in essence will help us harmonize things well as the project is down. (Kloppenburg, pg.474)

References.

Fay, J., & Patterson, D. (2018). Contemporary security management. Oxford: Butterworth-Heinemann.