Managing the contract

If the client does not have the in-house choice due to lack of own resources, or makes the alternative choice anyway, there are still several options. Whichever option he chooses, he will have to retain some in-house (that is, directly employed) resources to manage the contracting-out of the work, and eventually accept the completed project. 

The sales contract is the most important document for the execution of a project. For the project management, the contract represents a kind of bible the content of which they should know very well, as it includes all important issues regarding supply and services. Should the customer ask for the fulfilment of requirements which go beyond those stipulated in the contract, it is the task of the project management to reahze this, to review the contractual situation and to claim the respective extra costs. In case plant manufacturers are impeded through no fault of their own, they will try to put a so[Pg.55]

The index tranche product is an OTC derivative market and a pure synthetic form of corporate credit CDO exposure. The tranche market has been established so that the trade is a bilateral contract between the dealer and the investor. The term single tranche synthetic CDO is often used to describe an index tranche exposure. However, as a result of the contract, the dealer is exposed to the risk (credit, market, and operational) of managing the contract. 

As the name implies the company basically rents the rig and crew on a per day basis. Usually the oil company also manages the drilling operation and has full control over the drilling process. This type of contract actually encourages the contractor to spend as much time as acceptable on location . With increased cost consciousness, day rate contracts have become less favoured by most oil companies. 

The EPA Contract Laboratory Program (CLP) has responsibility for managing the analysis programs required under the U.S. Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). The approved analytical methods are designed to analyze water, soil, and sediment from potentially hazardous waste sites to determine the presence or absence of certain environmentally harmful organic compounds. The methods described here all require the use of GC/MS. 

It is incumbent upon the toller to develop and follow internal management systems as appropriate to support business needs, production needs, process safety, environmental responsibility, and worker health. The selection process should have considered whether or not satisfactory systems are in place. Nevertheless, the contract or auxiliary documents may be the vehicle used to help ensure that the system reviewed is the system actually used for completing the toll in question. Within the process safety management system, the management of change and training elements are essential subsystems. 

In addition to the plant workers, others may benefit from some special training related to the toll. It may be advantageous or required to consider laboratory personnel, technical support staff, management and others when planning training. Again, the contract may be the way to define this and document responsibility. 

This is important information that describes the site and provides workers, visitors, and other personnel with pertinent site information. In addition to studying job specifications, contracts, and talking with project management, the author(s) should develop a detailed operating history of the site. The history is useful when determining potential site hazards. The type of information that can typically be located includes ... 

Accepted solutions are usually covered by specifications and codes of practice. These documents are important for three reasons they form part of the contract they define methods of design and fabrication proven by experience and they act as a means of communication between the parties involved in design, fabrication, construction and inspection. There is a strong incentive to use standard solutions as unexpected problems or misunderstandings are less likely to occur than if a novel solution is attempted such problems lead to the cost of rectification, but the delay that they cause is usually more importantConsequently project managers are often reluctant to be the first to use a novel solution. 

And further, that the responsibilities for quality-related activities of the contract giver and contract acceptor should be specified in a written agreement . Similarly, ISO 9001 (2000) states that, Where an organization chooses to outsource any process that affects product conformity, the organisation shall ensure control over such outsourced processes. Control of such outsourced processes shall be identified within the quality management system. ... 

Additionally, these diversifications may represent sources of distraction for senior management, which can be exacerbated if the companies are publicly traded. A recent example is the diversification of the contract service organization aaiPharma (Wilmington, NC, U.S.A.) into a specialty pharmaceutical manufacturer. Quintiles (Research Triangle Park, NC, U.S.A.) also diversified aggressively in the 1990s and the acquisition of a patient billing company was problematic. 

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