BUS402: Unit 6 Discussion Questions

Consider responding to the following questions by posting your response on the course discussion board for BUS402. You may also respond to other students’ posts.

  1. In general, what types of project contracts exist? What are differences among them? As a project manager, what would be your most favorite contract to manage? Why?
  2. How can you handle changes requested by your clients after the project deliverables have been officially accepted?
  3. Assume you are assigned to an international project, what kind of potential issues or challenges do you need to be aware of when you start to plan the project?

1. In general, what types of project contracts exist? What are differences among them? As a project manager, what would be your most favorite contract to manage? Why?

1- Total fixed cost is a single price where the scope is well defined.
2- A fixed price with incentive contract offers a reward for finishing early or under budget or a penalty for being late.
3- A fixed price with adjustment allows for increases in cost of materials or changes in currency values.
4-A fixed unit price contract sets a price per unit, but the exact number of units is not known.
5- cost reimbursable plus fixed fee contract assures the contractor of a known fee.
6- A cost reimbursable plus percentage fee calculates the fee as a percentage of the costs.
7-A cost reimbursable plus incentive fee sets goals for the contractor to achieve that would result in a bonus.
8-A cost reimbursable plus award fee is similar, but the goals are more subjective.
9-Time and materials contracts pay for costs plus an hourly rate for the contractor’s time.

2. How can you handle changes requested by your clients after the project deliverables have been officially accepted?

new contract

3. Assume you are assigned to an international project, what kind of potential issues or challenges do you need to be aware of when you start to plan the project?

technical issu
behaviours issu
environnementale issu

As a project manager, my favorite contract to manage will be fixed total cost contract. The reason is I would love to have my total attention on completing the project on schedule, so I don’t want a situation where we will still be discussing changes in cost of materials which will divide my attention towards the completion of the project.

As a project manager, my favorite contract to manage will be fixed total cost contract. The reason is I would love to have my total attention on completing the project on schedule, so I dont want a situation where we will still be discussing changes in cost of materials which will divide my attention towards the completion of the project.

1.fixed price contract. It is used when goods or services are known or scope of work to be done is known
Cost reimbursable contract. It is used when scope of work or the cost for performing the work is not well known.

Two types of project contract are there one is fixed price contract and the other one is cost reimbursement contrast . And their difference is the first one is offers for predictable cost and second one is when the cost of performing the work not known. and my favorite contract is cost reimbursement contract because in my ten years experience I am familiar for this kind of contract as most outsourced contracts the volume of work is not known.
2. for unsatisfied client I prepare a revisited project decision mechanism and try to explain for him
3.I take minimum requirement for a project plan
3.1 what is to be done
3.2 when it needs to be done
3.3 who is to do it
3.4 How it is to be achieved