Discussion response

QUESTION:

Choose a project with a relatively simple description (building a LAN, designing a web page, inventing a new communication device, etc.).  Which type of contract structure (Fixed total price, Fixed unit price, Fixed price with incentive, Fixed fee with price adjustment) and what procurement documents (Request for Proposal, Invitation for Bid, Request for Quotation/Proposal) would you recommend for this project and why?  

RESPONSE 1: (CHRISTINA)

Project contract planning strengthens the procurement phase of the project. When choosing a contract type, these factors should be considered: the scope of work, uncertainty level, who assumes the risk, importance of milestone schedule, importance of cost predictability. Taking that into consideration, for a simple project such as designing a web page, a fixed price contract will suffice (Creative Commons, 2021). The reasoning behind this choice is that the quality of goods and services is known, the scope of work is clear, and the uncertainty level is low. For this reason, it is simple enough to offer a deliverable such as this at a predictable cost (Creative Commons, 2021). Needed procurement documents for this project would include a request for proposal and a request for quotation.

Reference

 

Creative Commons (2021). Retrieved 15 March 2021, from https://resources.saylor.org/wwwresources/archived/site/textbooks/Project%20Management%20-%20From%20Simple%20to%20Complex.pdf

RESPONSE 2: (CHINEDU)

Designing a website

In this discussion, I will use the same idea (designing a hospital website site) that I used on my last discussion. While developing this website, it will involve two main stages which must the team developer must take into consideration. In this project, I would prefer using fixed unit price contract because it sets a price per unit, but the exact number of units is not known in this case. This will give the best prediction keeping in mind that the requirements are set and they do not change in the process of project cycle (Wiley, et al, n.d).

The recommended procurement document in this project is request for proposal which is a formal document that outlines an organization's intent to get a service. Here the, the organization will be able to identify the potential vendor with the lowest bid who will be able to accomplish the project attaining the objectives of the organization. Basically, the request for proposal does not guarantee the vendor will get the project but is gives a clear understanding of the vendor. I would recommend the implementation of this project since it will bring a huge impact to both the hospital the society through the act of corporate social responsibility.

References

Watt, A. (n.d). 13. Procurement Management. Retrieved 12 March 2021, from  https://opentextbc.ca/projectmanagement/chapter/chapter-13-procurement-management-project-management/

Wiley, et al (n.d) 9.5 Selecting the Type of Contract. Retrieved 12 March 2021, from  https://pm4id.org/chapter/9-5-selecting-the-type-of-contract/#:~:text=A%20fixed%20unit%20price%20contract%20sets%20a%20price%20per%20unit,contractor%20of%20a%20known%20fee .