1. True. Because if the customer-contractor relationship lack trust it will be d
ID: 372761 • Letter: 1
Question
1. True. Because if the customer-contractor relationship lack trust it will be difficult to pass on information from one party to another and the final work may suffer, which would be a loss to the company in terms of opportunity lost and to the contractor in terms of contact lost and revenue lost.
2. True. If the hierarchy is not agreed upon by both the parties involved, there will be chaos, information gap and time lag just to understand whom to follow up from for a certain part of completion of the project.
For customer- Independent decision would include who will provide input and understanding of which part of the activity,
For contractor- Independent decision include, who will be responsible for what part of the project i.e. who will build a model, who will integrate the data etc.
Joint decision include: WHat should be the timeline of the project, the governance meeting schedule etc.
3. True. Time is of essence for both the parties. Customer needs to implement to project for the benefit of the company while the contractor should complete the project to increase business with the existing contractor and also earn good will.
Explanation / Answer
The contractor’s project office is often structured to be compatible with the customer’s
project office, sometimes on a one-to-one basis. Some customers view the contractor’s project
organization merely as an extension of their own company. Below are three statements concerning
this relationship. Are these statements true or false? Defend your answers.
1)There must exist mutual trust between the customer and contractor together with a close dayto-
day working relationship.
2)The project manager and the customer must agree on the hierarchy of decision that each must
make, either independently or jointly. (Which decisions can each make independently or jointly?)
3)Both the customer and contractor’s project personnel must be willing to make decisions as fast
as possible.
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