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Contract Management 2

Contract Management 2

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Categories:Types, Research
Published by: Sharman Mohd Shariff on Dec 06, 2010
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12/06/2010

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Name: Sharman Mohamed ShariffStudent ID No: CGS00421017
JANUARY SEMESTER 2010CONTRACT MANAGEMENT - EMCM 5103ASSIGNMENT 2SHARMAN MOHAMED SHARIFFCGS00421017
 
Name: Sharman Mohamed ShariffStudent ID No: CGS00421017
Question 1
Describe how you would manage the contract to ensure that the project organization and itsexecution will lead to a win-win situation for both your company and your client (owner). Useall the knowledge and techniques you have learnt from this module.To manage a contract of this magnitude with its myriad of complexities pertaining to different parties involved, especially ones than spans continents, an approach to contract management thatis aimed at achieving a cooperative organization is paramount.
 
Companies that operate acrossinternational borders need executives and managers who understand cross-cultural customs and business practices and how to promote efficiency and optimize profitability in a globalenvironment
.
Many corporations purchase supplies or sell products in other countries.
 
Acompany in Sudan may have a supplier from the Czech Republic (as per the case study). Thedesign work was carried out from an office in Holland while the contractor hailed fromMalaysia. Global Management techniques are needed in order to operate under these conditions.What follows are some of the anticipated problems that a Malaysian contractor could faced whenoperating in a foreign country:
Obtaining permits to run a business in another country.
Complying with the rules for foreigners working in another country.
Understanding the employment laws of other countries.
Understanding the business culture of other countries.
Understanding social customs of other countries.
 
Name: Sharman Mohamed ShariffStudent ID No: CGS00421017
 
A cooperative organization is where the owner and the contractor work together to manage therisk and achieve a better result for both of them.There are four fundamental elements for a binding contract to be formed between two companiesand there are:
Offer 
Acceptance
The intention to be legally bound
ConsiderationIn the case study presented above, the company was awarded an international contract by theclient worth USD 22 million. This constitute an offer by the client and acceptance by thecompany by virtue of, in law, an offer is both a statement of the terms upon which a party iswilling to contract (the client) and an expression of willingness to do so if an acceptance (thecompany) is given of those terms. An acceptance of an offer becomes effective when it has beencommunicated to the person who made the offer (the client). As in this case, an acceptance hastaken place since the contract has been awarded to the company.The contract specifically states that the company’s job is to ‘fabricate and install’ a 100,000gallon oil bulking containers in Sudan. The company will also supply supervisors and managersas well as equipments from its headquarters in Malaysia. This type of contract is typicallyreferred to as a ‘labour sub-contract’ since the design work is performed by a consultant fromHolland and it is most probable that this design office will have their engineers and clerk-of-

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