Fall-2013
Master of Business Administration - MBA Semester 4
SC0008–Purchasing and Contracting for Projects-4 Credits
(Book ID: B1663)
Assignment (60 Marks)
Note: Answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme. Each Question carries 10 marks 6 X 10=60.
Q1. What are the factors influencing contracting strategies?
Answer. Contracts are the fundament of the project management. They are used to procure people, materials and services. Main components in the contractor selection process will be outlined in this chapter. This processes are influenced by many factors such as the nature of the parties included, project type, and the risk allocation between the parties. The project is always about achieving a result. The main problem of this that client usually cannot or doesn’t wish to provide all necessary resources to complete the project from the internal sources.
Q2. Write a brief note on fixed price and reimbursable contracts and differentiate between them.
Answer. Fixed price and cost reimbursement are two approaches to creating contracts for service work. With the fixed price method, the contract and hiring party agree to a fixed price at the start of the project that doesn't change. With cost reimbursement, the contract allows for recovery of costs for materials and supplies that were purchased for the project, as outlined in the terms of the agreement.
1. Cost-reimbursement agreements/contract is typically a more detailed arrangement that sets up acceptable materials costs the provider
Q3. “Appropriate usage of words is very essential in communicating our requirements to the supplier or the contractor”. Justify.
Answer. With the competition for work becoming more and more noticeable we take a closer look at what to expect from a contractor or supplier that you will use. Your clients will expect good value for money and at the same time high levels of communication, workmanship and management.
Q4. What can a project manager do to control money flow?
Answer. Managing projects is difficult under the best circumstances. The project manager must balance competing stakeholder interests against the constraints of limited resources and time, ever-changing technologies, and unachievable demands from unreasonable people. Project management is people management, technology management, business management, risk management, and expectation
Q5. Explain any five steps required to evaluate tenders.
Answer. The purpose of an evaluation process in sourcing is to identify which bid offers the best value for money i.e. the most economically advantageous tender or proposal. The criteria that are specified in the invitation to tender document are the basis for the buying decision.
1. Preparation before issuing the tender
The tender evaluation criteria need to be defined prior to sending out the bid document or the Request for Proposal (RFP). The thought process is important at this stage as the criteria to be used for assessing the tender needs to be communicated to the bidders. Tender Evaluation criteria should reflect the risk and the value of the contract. In the Government sector it is normal practice to provide both the
Q6. Describe any two enquiry methods.
Answer. Inquiry is an approach to teaching that involves a process of exploring the natural world that leads to asking questions and making discoveries in the search of new understandings. Inquiry is a method of approaching problems that is used by professional scientists but is helpful to anyone who scientifically addresses matters encountered in everyday life. Inquiry is based on the formation of hypotheses and theories and on the collection of relevant evidence. There is no set order to the steps involved in
