In: Operations Management
LG is a small information systems consulting firm located in Phoenix,
AZ. LG has just been hired to design and install a local area network (LAN)
for the city of Phoenix’s social welfare agency. You are the manager for the project,
which includes one LG's professional and two interns from a local university.
You have just finished a preliminary scope statement for the project.
What type of contract(s) might be applicable to this project if you were to outsource certain aspects of your project to suppliers. Ensure that you justify your supplier contractual decisions based the inherent risks related to your selected contract type(s). Make any assumptions and document them accordingly.
The types of contracts are:
Cost-Plus Contract
Fixed Price Contract