The major facts that are to be taken into consideration are that the company Captiva Conglomerate has a contract with S.O Software developer for a new custom inventory and spare part management system. The management of Captiva Conglomerate is concerned with what to do at this point in the contract. Also, the president of Captiva Conglomerate signed the contract that states “best effort” which as long as S.O Software can prove it will be hard to sue for damages. Major Problems:
The software is behind, over budget and the currently version is not user friendly to the non IT personnel. The software design/specifications were written by the software developer and the Director of the IT department just signed off on the design. The software design was not processed through all departments for approval and comments. The system design was not clearly defined. There have also been 17 unpaid change orders. The contract calls for S.O Software’s best effort with no guaranteed deliverables. The regional and centralized system is 10 months behind and the spare management is 4 months. Possible Solutions/Alternatives:
The possible solution that Captiva Conglomerate has is to suspend the development of the current software with S.O Software and find a new software developer to complete the process. Another possible solution is to allow S.O Software to continue the development of the software with Captiva Conglomerate paying the fee and waiting the time. The third solution is that Captiva Conglomerate sues S.O Software or the uncompleted software and the 1$ million dollars in cost over runs. Lastly, Captiva Conglomerate can attempt to modify the terms and conditions of the contract to correct the current issues and change the terms to add deliverable and milestones. Choice and Rationale:
The best solution is to have Captiva Conglomerate suspend the development of the current software with S.O Software and find a new software developer to complete the...