Subject category:
Production and Operations Management
Published by:
Cranfield School of Management
Length: 4 pages
Data source: Generalised experience
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Abstract
The case is open ended, and will provide the tutor with a basis for discussion on a number of problem areas commonly encountered on large sites. These include: (1) the adequacy or otherwise of existing cost reporting systems; (2) the level of forward thinking necessary when planning a site, if one is to make effective use of mobile cranes; (3) the comparative advantages of plant hire or lease as compared with outright purchase; and (4) the cost of delay on completion of any major project includes the cost of keeping the site open, as well as interest cost on the capital spent to date. These can give rise to a possible conflict of interest between client and contractor. The contractor is generally interested in making a profit on his contract - whereas the client has to consider what is the total cost to him of any delays.
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Abstract
The case is open ended, and will provide the tutor with a basis for discussion on a number of problem areas commonly encountered on large sites. These include: (1) the adequacy or otherwise of existing cost reporting systems; (2) the level of forward thinking necessary when planning a site, if one is to make effective use of mobile cranes; (3) the comparative advantages of plant hire or lease as compared with outright purchase; and (4) the cost of delay on completion of any major project includes the cost of keeping the site open, as well as interest cost on the capital spent to date. These can give rise to a possible conflict of interest between client and contractor. The contractor is generally interested in making a profit on his contract - whereas the client has to consider what is the total cost to him of any delays.