Essay about Creation and Contract Management

1211 Words Jan 10th, 2012 5 Pages
Contract Creation and Management
In the University of Phoenix simulation (2011), Contract Creation and Management the author of this paper has become the project manager at Span Systems, leading its biggest and most prestigious banking software project with Citizen-Schwarz a large German bank. Span and C-S has agreed to a one-year contract that is worth $6 million dollars. In the past months Span and C-C’s has had conflict over the differences on the quality and dates received of deliverables. In the past months C-S’s deliveries have been late and the qualities are inadequate with substantial errors. With all of the delays and concerns; C-S is demanding for unfinished code and rescinding of the contract.
The CEO at Span has advised that
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To take a different stance in the negotiating with C-S, Span addressed different concerns within the contract. They address the contract clauses Breach of Contract under ‘Intellectual Property Rights’, Beach of Contract under ‘Communications and Reporting’, and Breach of Contract under substantial performance of contract.
Under the contract clause Breach of Contract under ‘Intellectual Property Rights’ C-S replied that they were no violation of Span’s copyrights. Under the Contract clause Breach of Contract under ‘Communication and Reporting’ C-S replied that they agreed that change in the project management at C-S may have caused the delay, but noted that this was in September. Lastly, the last contract clause to address was Breach of Contract under substantial performance of contract. C-S replied that was unacceptable. Span should have completed 60% of the project as per the schedule, but only 40% of the project had actually been completed. C-S felt that performance has therefore been far from substantial. C-S wasn’t too pleased with arguing the contract clauses and it prove to be counter-productive for Span in the long run. Grant suggested that they try a few proactive measures to help C-S achieve its business goals. Span went back to the negotiation talks with how they could bring the project back to health by selecting measures

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