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ed agreement (BATNA) Colocation Escalation Joint evaluation Metexpectations model Partnering charter Principled negotiation Project partnering PowerPoint Presentation by Charlie Cook Copyright 169。 2022 The McGrawHill Companies. All rights reserved. THE MANAGERIAL PROCESS Clifford F. Gray Eric W. Larson Third Edition P r o j e c t M a n a g e m e n tr o j e c t a n a g e m e n tChapter Appendix Contract Management Copyright 169。 2022 The McGrawHill Companies. All rights reserved. McGrawHill/Irwin 12–20 Types of Contracts ? FixedPrice (FP) Contract or Lumpsum Agreement –The contractor with the lowest bid agrees to perform all work specified in the contract at a fixed price. –The disadvantage for owners is that it is more difficult and more costly to prepare. –The primary disadvantage for contractors is the risk of underestimating project costs. –Contract adjustments ? Redetermination provisions ? Performance incentives Copyright 169。 2022 The McGrawHill Companies. All rights reserved. McGrawHill/Irwin 12–21 Types of Contracts (cont’d) ? CostPlus Contracts –The contractor is reimbursed for all direct allowable costs (materials, labor, travel) plus an additional priornegotiated fee (set as a percentage of the total costs) to cover overhead and profit. –Risk to client is in relying on the contractor’s best efforts to contain costs. –Controls on contractors ? Performance and schedule incentives ? Costssharing clauses Copyright 169。 2022 The McGrawHill Companies. All rights reserved. McGrawHill/Irwin 12–22 Contract Changes ? Contract Change Control System –Defines the process by which a contract’s authorized scope (costs and activities) may be modified: ? Paperwork ? Tracking systems ? Dispute resolution procedures ? Approval levels necessary for authorizing changes –Best practice is the inclusion of change control system provisions in the original contract.