BBA 4326 Unit II Assessment

BBA 4326 Unit II Assessment

What are the three major categories of resources for a business organization affected by the contract management process? 75

According to Garrett (2015) the three major resources for a business organization that are affected by the contract management process and that that businesses and organizations must strive to use most efficiently are labor, capital, and money. Labor may be affected by the terms and conditions put into place within the contract. Outsourcing can also affect labor if specific products are selected to be acquired from outside sources rather than insourcing the products from within. Capital can be affected for both buyers and sellers. Buyers capital may be affected should a seller fail to meet certain contractual obligations and seller capital is affected in the procurement of resources required to meet obligations. Money can be affected both positively and negatively. Should the agreement fall short all parties can lose in terms of money but should agreements be met all parties have the potential to make money.

Reference:

Garrett, G. A. (2015). World class contracting (6th ed.). Riverwoods, IL: CCH.

Why is source selection, deciding which potential supplier for a good or service a business needs, such an important decision in the contract management process? 75

“Seller selection is one of the most important decisions a buyer will make” (Garrett, 2015, p. 23). Source selection, or deciding between potential suppliers for a good or service, is an extremely important decision in the contract management process as the success or failure of the contract will depend very highly on the capability and reliability of one or possibly more sources and their subcontractors. Source selection can be very simple and come down to simply picking the supplier with the lowest bid, but it can also be very in depth required weeks or months of in depth analysis to determine the suitability of a supplier. There is no single set of criteria used to determine which supplier is appropriate for a particular project, therefore original analysis must be conducted for each contract (Garrett, 2015).

Reference:

Garrett, G. A. (2015). World class contracting (6th ed.). Riverwoods, IL: CCH.

In the contract procurement process for a typical business organization, how do the duties and responsibilities of the project manager compare to the duties and responsibilities of the contract manager? 200

The duties and responsibilities of project managers and contract managers very obviously overlap when examining the day-to-day interactions and operations of members of the two professions. Additionally, each profession coordinates regularly with sales managers, financial managers, and many others within business organizations. In fact, it can be seen in many organizations that so much overlap exists within operations between the two professions that it becomes a source of conflict and tension, sometimes clouding the chain of command for who may be in charge within a contract or project. In many commercial companies, project managers are typically responsible for the coordinated undertaking of goal oriented projects whereas a contract manager may fall under another specific contract management organization that supports multiple contracting requires across an entire company. Additionally, project managers often serve as team leaders on one or more projects, ultimately ensuring the achievement of desired results and outcomes within these project. However, they typically lack the authority to sign, modify, or cancel the contract that’s legally bind companies to buy or sell products or services. Contract managers on the other hand are rarely in charge of day-to-day project planning or operations and do not typically serve as team leads. However, unlike project managers, contract manager’s posses the authorization to enter into legally binding contractual agreements (Garrett, 2015).

Reference:

Garrett, G. A. (2015). World class contracting (6th ed.). Riverwoods, IL: CCH.