Trans LAN Case
Question 1
Risk management begins with listing out all the possible risks that could affect the project, which is also known as risk identification. Some of the potential risks associated with the Trans LAN project include:
- Staffing – Due to the unavailability of adequate experienced staff, the project time requirement might increase, leading to increased costs and delays.
- Budget – The project requirements might exceed the budget estimates.
- Compliance – The final project might fail to meet the client’s specifications, leading to the client not accepting the system.
- Working Hours – The project staff may not be used to working at night, leading to reduced productivity and, hence, project delays.
- Training – The client’s staff might not be available on the set training dates, delaying the project completion and handover date.
Additional Questions – Question 3
Type of Contract Applicable To This Project For Outsourcing
The project would implement the cost-plus contract, whereby the contractor is reimbursed for all the direct expenses, including labor, raw materials, and logistics, in addition to the margin. Notably, this fee is negotiated at the onset of the contract and constitutes a percentage of the total expenses. In small projects, this contract is titled “time and materials contract”, whereby the client reimburses the contractor for the raw material costs and labor expenses incurred in implementing the project (Larson & Gray, 2015). Notably, this agreement incentivizes contractors to place their best efforts to execute the project effectively. The contract selection was performed in light of the main risks encountered by the project, which include performance, schedule, and strategic and operational risks.
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The performance risks arise from delivering a project that does not perform in line with the client’s specifications. Given that this is a technology project, there is a need to ensure the contractor performs at their best by incorporating high-quality products and proficient expertise. In this case, the contractor is likely to select the best-performing desktops, servers, printers, and even legally acquired operating systems since the client incurs the costs. Furthermore, high-quality material is needed to set up a strong Local Area Network (LAN). If the fixed plus contract is executed, the contractor will source refurbished computers and pirated operating software to save costs and maximize profit. This would compromise the client’s operations since they require high-performing machines to undertake their core activities. The schedule risks arise from delivering the project later than the deadline. This is mostly a result of insufficient funds on the contractors’ side. In this case, the client will finance the project’s activities, hence eliminating this risk. The strategic risks arise from the selection of obsolete technology. Then again, this occurrence is a result of the contractor’s attempt to save costs. The latest technologies are usually priced higher; hence, the contractor may prefer older, less expensive technologies to the client’s detriment. Lastly, governance risks arise from unethical practices and adverse impacts on the local community. These risks are a result of companies attempting to control costs, hence sourcing low-quality products, which produce adverse effects on the environment. This occurrence is averted by the client taking charge of the contract, dictating the materials to be purchased, and prompting ethics and social responsibility.
References
Larson, E. W., & Gray, C. F. (2015). A guide to the project management body of knowledge: PMBOK (®) guide. In Project Management Institute (Vol. 1095).
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Question 
Trans LAN Case
Project Procurement and Risk Management Assignment (O)
NOTE: Refer to the Instructions for Citrix in the Course Materials.
Complete Case 7.3 Trans LAN Project in Larson and Gray by responding to questions 1, 2, and 3. Combine items 1 and 2 into a single Risk Assessment Form (see Figure 7.6 in Larson and Gray) and use Microsoft Excel to complete this item. Use Microsoft Excel for the Risk Response Matrix (see Figure 7.8 in Larson and Gray) for question 3. Note that additional items may be added to the Risk Assessment Form and the Risk Response Matrix.
In addition to the requested items in the case, complete the following:
- Based on the risks that you identified on the Risk Assessment Form, create a Risk Severity Matrix (see Figure 7.7 in Larson and Gray). Note that additional information beyond the information shown in Figure 7.7 may be provided. Use Microsoft Excel to complete this item.
- Make any assumptions and document them as necessary to complete the aforementioned items.
- Based on the information in Appendix 12.1 in Larson and Gray, evaluate what type of contract(s) might be applicable to this project if you were to outsource certain aspects of your project to suppliers. Ensure that you justify your supplier contractual decisions based the inherent risks related to your selected contract type(s). Make any assumptions and document them accordingly. Ensure that at least 350 words are provided. APA formatting is not required. Place your responses into a Microsoft Word file.
Trans LAN Case
Ensure that the Risk Assessment Form, Risk Severity Matrix, and Risk Response Matrix are included in the same Microsoft Excel File. Submit your Microsoft Excel File and your Microsoft Word File. Ensure that your last name is in your file names.
While APA style is not required for the body of this assignment, solid academic writing is expected, and in-text citations and references should be presented using APA documentation guidelines, which can be found in the APA Style Guide, located in the Student Success Center.
This assignment uses a scoring guide Please review the scoring guide prior to beginning the assignment to become familiar with the expectations for successful completion.
Notes:
- Complete part 3 (bolded)