MACE70075 Project Contract, Commercial and Procurement Management Assessment

Question 2:

Using your firm as case laboratory answer the following questions:
(a. i) From your own experience define “contract cycle time” and estimate its average duration.
(b. ii) How can you reduce contract cycle time in your firm?
(c. ) Conceive a “contract scenario” in your firm and set out a contract that will keep Total Cost
of Operations (TCO) to the barest minimum (TCO).
(d. ) Develop a concession matrix for the scenario described in (c).
(e. ) Which of the four (4) listed cost model listed below will you base your negotiation on and
why?
a. Must cost
b. Should cost
c. Benchmarking
d. Total cost
(f. ) A systematic review of commercial and procurement literature.
(g. ) Drawing on your scenario, derive a Win-Win negotiation strategy that gives suppliers high
value, low Total Cost of Operation (TCO) concession that achieves your biggest objectives.
(h. ) Prescribe a strategy that will reduce cost in your firm’s supply chain. (56 Marks)