PROJECT MANAGEMENT (LOOSELEAF)-W/ACCESS
7th Edition
ISBN: 9781260216011
Author: Larson
Publisher: MCG
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Textbook Question
Chapter 5.1A, Problem 5E
Near the end of the project, Deutsch Telefon AG has requested a cost estimate for four satellites identical to those you have already produced. What price will you quote them? Justify your price.
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Answer the given question with a proper explanation and step-by-step solution.
how can i solve this question??
Discuss non-price issues over which a buyer and seller can reach an agreement, and explain why each issue might be
important to the buyer or seller.
XYZ Construction Company is contracted by ABC Corporation to build a large industrial facility. The parties agree to a Cost Plus a
Percentage of Costs Fee Contract, where XYZ Construction will be reimbursed for the actual costs incurred during construction,
plus a percentage as their fee. The contract does not include a maximum price or a guaranteed maximum price clause.
As the construction progresses, XYZ Construction faces various challenges, including unforeseen delays, design changes, and supply
chain disruptions. These issues lead to significant cost overruns, with the project's expenses far exceeding the initial estimates. The
lack of a fixed price creates concerns for ABC Corporation, as the total cost keeps escalating.
In this scenario, why does the Cost Plus a Percentage of Costs Fee Contract become unsuitable for ABC Corporation? What are the
potential risks and drawbacks associated with this contract type in the context of cost overruns? How could ABC Corporation have
better…
Chapter 5 Solutions
PROJECT MANAGEMENT (LOOSELEAF)-W/ACCESS
Ch. 5.1A - How many labor hours should the eighth satellite...Ch. 5.1A - How many labor hours for the whole project of...Ch. 5.1A - What price would you ask for the project? Why?Ch. 5.1A - Midway through the project your design and...Ch. 5.1A - Near the end of the project, Deutsch Telefon AG...Ch. 5 - Why are accurate estimates critical to effective...Ch. 5 - Prob. 2RQCh. 5 - Prob. 3RQCh. 5 - What are the major types of costs? Which costs are...Ch. 5 - Why is it difficult to estimate mega project...
Ch. 5 - Define what a white elephant is in project...Ch. 5 - Calculate the direct cost of labor tor a project...Ch. 5 - Mrs. Tolstoy and her husband, Serge, are planning...Ch. 5 - Exercise Figure 5.1 is a project WBS with cost...Ch. 5 - Firewall Project XT. Using the complexity...Ch. 5 - At this point, what would you do if you were the...Ch. 5 - Prob. 5.1.2CCh. 5 - What estimating techniques should be used for a...Ch. 5 - Assume you are either Mike or Josh; how would you...Ch. 5 - Prob. 5.2.2CCh. 5 - After cost, what other factors should be...
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