Suppose you are a project manager of a power plant project and there is a penalty in your contract with the main client for every day you deliver the project late. You need to decide which sub-contractor is appropriate for your projects critical path activities. But while selecting a sub-contractor, you should take into consideration the costs and delivery dates. • Sub-contractor A bids 200,000 OMR. You estimate that there is a 35% possibility of completing 50 days late. As per your contract with the client, you must pay a delay penalty of 4,500 OMR per calendar day for every day you deliver late. • Sub-contractor B bids 260,000 OMR. You estimate that there is a 13% possibility of completing 15 days late. As per your contract with the client, you must pay a delay penalty of 4,500 OMR per calendar day for every day you deliver late. Determine which sub-contractor is appropriate for your projects critical path activities. Both sub- contractors promise successful delivery and high-quality work.
Suppose you are a project manager of a power plant project and there is a penalty in your contract with the main client for every day you deliver the project late. You need to decide which sub-contractor is appropriate for your projects critical path activities. But while selecting a sub-contractor, you should take into consideration the costs and delivery dates.
• Sub-contractor A bids 200,000 OMR. You estimate that there is a 35% possibility of completing 50 days late. As per your contract with the client, you must pay a delay penalty of 4,500 OMR per calendar day for every day you deliver late.
• Sub-contractor B bids 260,000 OMR. You estimate that there is a 13% possibility of completing 15 days late. As per your contract with the client, you must pay a delay penalty of 4,500 OMR per calendar day for every day you deliver late.
Determine which sub-contractor is appropriate for your projects critical path activities. Both sub- contractors promise successful delivery and high-quality work.
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