Contract Creation and Management Assignment
The Contract Creation Management simulation shows the project manager of the Spans systems the world’s top leading banking software to address major concerns within the contract with one of the company’s largest consumers. Citizen Schwartz Ag is a German bank that has issues that are falling towards dissolution business between both companies. Span Systems is trying not to lose its biggest consumer and the chief executive is trying to settle this matter amicably .There are issues and flaws from both side that need to be resolved with new alternatives. Leon Ther is the negotiator for Citizen Schwartz Ag, he notices that an issue with the schedule slips and the fact that the product is lowering its quality only months into the project. After Thor noticed this slip in quality he demands an immediate transfer of unfinished code and asserted a contract rescission. As the Project Manager, it is known that both companies would be responsible for the delays and problems within the projects. Citizen Schwarz AG is facing changes in their own project management structure as well. The user and system requirements have unpredictably grown from its anticipated 940 to 1015 size since with the original system. These changes were not anticipated and building large expenses above the original budget. Because of this, Span has gone out of its way to meet these deadlines but consequently sacrificing its quality in the process that Citizen Schwarz AG is complaining about. These problems have encouraged Citizen Schwarz AG to take action to amend the contracts. There are also allegations started that they plan on breaking its partnership and start using another company, Indian software company. Span system is agreeing and is dedicated to resolve the problem before they end up losing their largest account and end up spending a lot of money for attorneys and litigation. Its best approach is to direct kindly the German bank to its breaches of the contract to lessen its aggressiveness and reconsider for immediate change and find a solution through amendments the two firms can agree on (University of Phoenix Simulation, 2010). Span Systems needs to refer to the contract with There to point any violations forcing them to reconsider, this is the first step to help resolve is huge issue. The first violation can be found on the procedural compliance of the Internal Escalation Procedure for Disputes, the procedure to properly handle disputes. It states that the aggrieved or invoking party shall call for progressive management involvement in the dispute negotiation by written notice to the party in order of: Span project leader/ C-S project leader on the primary level with five business days allotted; Span Project Manager/ C-S project manager on the first level with 10 business days allotted; Span Projects director/ CS-IT director on the second level with 15 business days allotted; Span CEO and C-S CEO on the third level with 20 business days allotted (University of Phoenix Simulation, 2002). As a defense for Span, C-S has straight violated this agreement. Also, The communication and reporting portion of the contract calls for its regular schedule meetings overlooked by both the C-S and Span project managers in forms of minutes using the mode of mail, e-mail, and in person communication. Although Ther states there is no proof for the claim of violation, C-S is