February 25, 2011
TO:Span Systems Management
DATE:February 14, 2011
RE:Recognizing Contract Risk and Opportunities Memo
In the last few months, Span Systems and C-S have been undergoing negotiations to address the issues brought forth by C-S regarding delivery and quality of goods. The relationship with C-S is beneficial for Span Systems to continue the working relationship with C-S. Below are the legal principles, prevention, resolutions, and management responsibilities of each issue affecting Span Systems and C-S: Issue 1: C-S claims that Span’s deliverables are low on quality and behind on schedule. Legal Principle:Tender of Delivery [UCC2-301]; Transfer and delivery of goods to the buyer of lessee in accordance with a sales or lease contract (Cheeseman, pp. 310).
Prevention: To ensure timely delivery and quality of goods through time-lines, check points, and audits. Span will benefit from these prevention techniques by systematically enforcing product quotas therefore adhering to delivery timelines.
Resolutions:C-S representative collaboratively working with the Span team to ensure
quality and timeliness to provide feedback to both Span Systems and C-S.
Both Span and C-S will benefit from this because constructive feedback
is given in a faster manner. Issues and concerns may be addressed
immediately. The simulation suggested various alternatives such as including a C-S representative to assist, advise, and monitor progress to address this issue effectively. The simulations also suggest increasing Span programmers to increase efficiency and productivity. Increasing human resources will increase quality and production of goods. Management:Management is responsible for creating timelines and deadlines while monitoring work progress to ensure that each portion of the project is completed on time and meets quality standards. The simulation...