solution

/in /by

solution.

  1. i-Tele is a Saudi telecom company that is negotiating several contact options before signing one with Safe Home technical company who will be the main router supplier for their projects. One of i-Tele project managers asked you to advise them by providing a detailed answer to the following scenarios to help her make the best procurement decision.

  1. Scenario 1-a cost-plus-incentive fee contract: The contract has a target profit of SR 70,000, a target cost of SR 300’000, a target fee of SR 40’000. Also, it has a shared ratio of 80/20, a max fee of SR 60’000, and a min fee of SR10’000. If i-Tele’s actual costs are SR 380’000, how much fee will SafeHome have to pay?

    Save your time - order a paper!

    Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

    Order Paper Now

  2. Scenario 2- a fixed-price-incentive-fee contract: The contract has a target cost of SR 200’000, a target profit of SR 30’000, and a target price of SR 230’000. The i-Tele also has negotiated a ceiling price of SR 270’000 and a share ratio of 70/30. If SafeHome completes the contract with actual costs of SR 170’000, how much profit will i-Tele pay the SafeHome?

  3. Scenario 3- a cost-plus-fixed-fee contract: the contract value is SR 110’000, consisting of: SR 100’000 of estimated costs with a fixed fee of 10%. If SafeHome completes the work but only incurs SR 80’000 in actual cost. What is the total cost to the project?

solution

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"