Master of Business Administration Semester 4 Subject Code PM0018 Subject Name Contracts Management in Projects Assignment Set- 1 (60

(60 Marks) Note: Each question in total carries 10 Marks. Answer all the questions. Q 1. Describe the four basic elements of a contract. Contract is a binding agreement between two or more parties. Once signed, this agreement can be enforced by either a court of law or binding arbitration. Because legal contracts cannot be signed under duress, there is the "mirror image" standard of binding agreement. This simply means that each party must be as willing to sign the agreement as the other. The concept of "breach of contract" is recognized by state and federal laws and is a valid reason for litigation. Mutual Consent To enter into a binding contract, there must be mutual consent and understanding between the parties. This means there must be a certain amount of conceptualization about the contract's terms. This is why legal contracts are so long and filled with what people refer to as "lawyer-speak." All the fine print is putting into words the concepts of the contract so there is no wiggle room for interpretation. Agreement This is known as the "offer and acceptance" element of the contract. It is just as it sounds. One party will make an offer, and the other party will accept the offer. This is what makes a contract take shape. If one party makes an offer and the other party makes a counteroffer, an agreement has not been made. This is usually seen as a rejection of the offer. If the counteroffer is rejected, the original offer does not necessarily stand anymore. Exchange This is one of the very basic elements of a contract. Each of the parties must bring to the table some form of product, service or legal tender to have a mutual exchange. This means

that a contract can involve any of these exchanges. Employment contracts involve a business exchanging a salary and benefits for the work services of a new employee. Sales contracts involve the exchange of goods for the promise of payment from a customer. In most cases, contracts are only enforceable after one of the parties has fulfilled his share of the exchange. For instance, the new employee mentioned above would have a difficult time suing his employer for not paying him if he failed to show up for work. No Public Policy Violation Even if a contract meets all other necessary elements, violating public policy will automatically invalidate it. For instance, if prostitution is against the law in a certain city, a contract in which a woman agrees to sleep with a man for a specified amount of money would be invalidated because it violates public policy. This means that the terms of the contract would be unenforceable in a court of law. At least two separate parties entering into an agreement. The agreement can be between two individuals, between an individual and a company or between a company and another company. The parties are qualified to agree to the terms and conditions in the contract. The parties must be of legal age and have full understanding of what the contract is and the details it outlines. Both parties are receiving consideration, or value, from the agreement. This is most commonly money in exchange for a good or service, but there are other methods of consideration, especially in the business arena. The contract is created for legal activities. Contracts are not binding or considered legally valid when they propose illegal activities or violate existing laws in any way. Breach Of Contract A party who has agreed to a valid contract can be held in breach of that agreement in a court of law. When one party seeks legal recourse against another for breach of contract, that party must re-evaluate the contract based on the four elements. These elements are essential in showing that one party did not live up to his end of a valid contract. The plaintiff must prove that:

The contract was valid. In court, the plaintiff will attempt to prove that all the elements that went into making the contract met the validity requirements. One party did perform according to the contract. The plaintiff must show that the other party did not complete the contract, while proving that the plaintiff did abide by the contract. The other party failed to perform according to the contract agreement. The plaintiff will have to show that the other party failed to meet the basic contractual obligations. Damage was incurred. The plaintiff must show that damage occurred as a result of the other party's breach of contract. This could mean loss of money, assets or other quantifiable items.

Q 2. Describe the characteristics and legal issues of Lump-Sum Turn Key type (LSTK) contract Dear Students / Working Professionals , Get your completely solved assignments from Our ESTEEMED

ORGANIZATION smumbaassignment.com and get 100% marks.

For

getting

solutions

just

email

to

kvsude@gmail.com or S M S to +91 9995105420.

SMS Format E-MAIL ID Space Name with in 24H Or Directly call our Middle East Office +974 55702886 . To +91 9995105420 , we will reach back you

More

Info,

Kindly

visit

smumbaassignment.com

or

http://smumbaassignments.in Best Regards, Admin smumbaassignment.com [NB: our Skype Id : kvsude ]

Q 3. Write short note on the following bidding methods: a. International/Global Competitive Bidding (ICB). he purpose of this page is to provide information to enable qualified bidders from NATO nations contributing to the funding of the requirements to make an offer in accordance with the bidding instructions included in the respective solicitations packages.

Q 4. List the advantages of referring a dispute to arbitration. Arbitration, a form of alternative dispute resolution (ADR), is a legal technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to one or more persons (the "arbitrators", "arbiters" or "arbitral tribunal"),

Q.5. Write a short note on the following types of mergers: a. Product extension merger.

Product Extension Merger

According to definition, product extension merger takes place between two business organizations that deal in products that are related to each other and operate in the same market. The product extension merger allows the merging companies

Q 6. Describe in brief the major components of planning negotiation Negotiation is a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue Dear Students / Working Professionals , Get your completely solved assignments from Our ESTEEMED

ORGANIZATION smumbaassignment.com and get 100% marks.

For

getting

solutions

just

email

to

kvsude@gmail.com or S M S to +91 9995105420.

SMS Format E-MAIL ID Space Name with in 24H Or Directly call our Middle East Office +974 55702886 . More Info, Kindly visit smumbaassignment.com or To +91 9995105420 , we will reach back you

http://smumbaassignments.in Best Regards, Admin smumbaassignment.com [NB: our Skype Id : kvsude ]

Master of Business Administration Semester 4 Subject Code PM0018 Subject Name Contracts Management in Projects Assignment Set- 2 (60 Marks) Note: Each question carries 10 Marks. Answer all the questions.

Q 1. Compare strategic level analysis & Operational level analysis for Make or Buy decision The make-or-buy decision is the act of making a strategic choice between producing an item internally (in-house) or buying it externally (from an outside supplier). The buy side of the decision also is referred to as outsourcing. Make-orbuy decisions usually arise when a firm that has developed a product or partor significantly modified a product or partis having trouble with current suppliers, or has diminishing capacity or changing demand. Make-or-buy analysis is conducted at the strategic and operational level. Obviously, the strategic level is the more long-range of the two. Variables considered at the strategic level include analysis of the future, as well as the current environment. Issues like government regulation, competing firms, and market trends all have a strategic impact on the make-or-buy decision. Of course, firms should make items that reinforce or are in-line with their core competencies. These are areas in which the firm is strongest and which give the firm a competitive advantage. The increased existence of firms that utilize the concept of lean manufacturing has prompted an increase in outsourcing. Manufacturers are tending to purchase subassemblies rather than piece parts, and are outsourcing activities ranging from logistics to administrative services. In their 2003 book World Class Supply Management, David Burt, Donald Dobler, and Stephen Starling present a rule of

thumb for out-sourcing. It prescribes that a firm outsource all items that do not fit one of the following three categories: (1) the item is critical to the success of the product, including customer perception of important product attributes; (2) the item requires specialized design and manufacturing skills or equipment, and the number of capable and reliable suppliers is extremely limited; and (3) the item fits well within the firm's core competencies, or within those the firm must develop to fulfill future plans. Items that fit under one of these three categories are considered strategic in nature and should be produced internally if at all possible. Make-or-buy decisions also occur at the operational level. Analysis in separate texts by Burt, Dobler, and Starling, as well as Joel Wisner, G. Keong Leong, and Keah-Choon Tan, suggest these considerations that favor making a part in-house: Cost considerations (less expensive to make the part) Desire to integrate plant operations Productive use of excess plant capacity to help absorb fixed overhead (using existing idle capacity) Need to exert direct control over production and/or quality

Better quality control Design secrecy is required to protect proprietary technology Unreliable suppliers No competent suppliers Desire to maintain a stable workforce (in periods of declining sales) Quantity too small to interest a supplier Control of lead time, transportation, and warehousing costs Greater assurance of continual supply

 Provision of a second source Political, social or environmental reasons (union pressure) Emotion (e.g., pride) Factors that may influence firms to buy a part externally include: Lack of expertise Suppliers' research and specialized know-how exceeds that of the buyer cost considerations (less expensive to buy the item) Small-volume requirements

Limited production facilities or insufficient capacity Desire to maintain a multiple-source policy Indirect managerial control considerations Procurement and inventory considerations Brand preference Item not essential to the firm's strategy The two most important factors to consider in a make-or-buy decision are cost and the availability of production capacity. Burt, Dobler, and Starling warn that "no other factor is subject to more varied interpretation and to greater misunderstanding" Cost considerations should include all relevant costs and be long-term in nature. Obviously, the buying firm will compare production and purchase costs. Burt, Dobler, and Starling provide the major elements included in this comparison. Elements of the "make" analysis include:

 Incremental inventory-carrying costs Direct labor costs Incremental factory overhead costs Delivered purchased material costs Incremental managerial costs Any follow-on costs stemming from quality and related problems Incremental purchasing costs Incremental capital costs

Cost considerations for the "buy" analysis include: Purchase price of the part Transportation costs Receiving and inspection costs Incremental purchasing costs Any follow-on costs related to quality or service One will note that six of the costs to consider are incremental. By definition, incremental costs would not be incurred if the part were purchased from an outside source. If a firm does not currently have the capacity to make the part, incremental costs will include variable costs plus the full portion of fixed overhead allocable to the part's manufacture. If the firm has excess capacity that can be used to produce the part in question, only the variable overhead caused by production of the parts are considered incremental. That is, fixed costs, under conditions of sufficient idle capacity, are not incremental and should not be considered as part of the cost to

make the part. While cost is seldom the only criterion used in a make-or-buy decision, simple break-even analysis can be an effective way to quickly surmise the cost implications within a decision. Suppose that a firm can purchase equipment for inhouse use for $250,000 and produce the needed parts for $10 each. Alternatively, a supplier could produce and ship the part for $15 each. Ignoring the cost of negotiating a contract with the supplier, the simple break-even point could easily be computed: $250,000 + $10Q = $15Q $250,000 = $15Q $10Q $250,000 = $5Q 50,000 = Q Therefore, it would be more cost effective for a firm to buy the part if demand is less than 50,000 units, and make the part if demand exceeds 50,000 units. However, if the firm had enough idle capacity to produce the parts, the fixed cost of $250,000 would not be incurred (meaning it is not an incremental cost), making the prospect of making the part too cost efficient to ignore. Stanley Gardiner and John Blackstone's 1991 paper in the International Journal of Purchasing and Materials Management presented the contribution-per-constraintminute (CPCM) method of make-or-buy analysis, which makes the decision based on the theory of constraints. They also used this approach to determine the maximum permissible component price (MPCP) that a buyer should pay when outsourcing. In 2005 Jaydeep Balakrishnan and Chun Hung Cheng noted that Gardiner and Blackstone's method did not guarantee a best solution for a complicated make-or-buy problem. Therefore, they offer an updated, enhanced approach using spreadsheets with built-in liner programming (LP) capability to provide "what if" analyses to encourage efforts toward finding an optimal solution.

Firms have started to realize the importance of the make-or-buy decision to overall manufacturing strategy and the implication it can have for employment levels, asset levels, and core competencies. In response to this, some firms have adopted total cost of ownership (TCO) procedures for incorporating non-price considerations into the make-or-buy decision. Q 2. Write short notes on the following: a. Design, Bid, Build (D-B-B) methodology Design-bid-build (or design/bid/build, and abbreviated D-B-B or D/B/B accordingly), also known as Design-tender (or "design/tender") and Traditional Method, is a project delivery method in which the agency or owner contracts with separate entities for each the design and construction of a project.

Dear Students / Working Professionals , Get your completely solved assignments from Our ESTEEMED

ORGANIZATION smumbaassignment.com and get 100% marks.

For

getting

solutions

just

email

to

kvsude@gmail.com or S M S to +91 9995105420.

SMS Format E-MAIL ID Space Name with in 24H To +91 9995105420 , we will reach back you

Or Directly call our Middle East Office +974 55702886 . More Info, Kindly visit smumbaassignment.com or

http://smumbaassignments.in Best Regards, Admin smumbaassignment.com [NB: our Skype Id : kvsude ]

Q 3.List and describe in brief the four types of consultancy contract. There are several types of contracts typically used to engage software development vendors /suppliers:-

Q 4. List the advantages & disadvantages of Mergers & Acquisitions. A merger does not require cash. A merger may be accomplished tax-free for both parties.

Q 5. Explain the following a. Indian Contract Act Q 6. Describe the actions that can be used to minimize the causes of disputes and claims in contracts. No customer or contractor wants its contract plagued by disputes. Resolving disputes absorbs valuable resources, frequently sours the present contractual relationship and could affect future business relationships between the parties. Ironically, some of the

leading causes of disputes are the easiest to minimize through careful contract negotiation and administration. Three of these are discussed below with simple, but often overlooked, precautions that can help to avoid them. Dear Students / Working Professionals , Get your completely solved assignments from Our ESTEEMED

ORGANIZATION smumbaassignment.com and get 100% marks.

For

getting

solutions

just

email

to

kvsude@gmail.com or S M S to +91 9995105420.

SMS Format E-MAIL ID Space Name with in 24H Or Directly call our Middle East Office +974 55702886 . More Info, Kindly visit smumbaassignment.com or To +91 9995105420 , we will reach back you

http://smumbaassignments.in Best Regards, Admin smumbaassignment.com [NB: our Skype Id : kvsude ]