Power Generation and Distribution Blog

Time and materials with 2 or 3 project status reviews works well. I would also make sure that ownership of materials unprocessed and inprocess is clearly stated.

EX: Total project cost = Materials + NRE or Set-Up + Processing + Acceptance and/or POD Testing.

Dear All,

I am working as an electrical engineer in a company whose core business is mechanical. Our solutions include electrical matters as well. I would prefer to do elstrical business my own but I couldnt manage it due to the system in my company so In my situation I choose to outsource projects with good contracts. This issue has been in my mind for long time and I am really wondering about how others handle business.

Yours sincerely

Yassin GUNES

gunesyasin@yahoo.com

Fixed price thinking is the best. The IF is a) all project details are drawn out. b) all materials are scheduled. c) manufacturing, delivery dates are certain. d) Critical path is defined. e) transportation is routined. f) weather condissions are taken care of and g) project manpower is critically judged, h) as is at present global scenario the problem of insurgency will not hamper.

Time and Materials is the better alternative if the executioner outsourced is technically good and the Industry has proper interactive personnel.

If i want to execute a project I just reassign it to an incompetent person and then fail to support them. Kills the project dead everytime!

milo