Manager/customer interface. 

Changes may occur to the customer’s policies or the personnel who are supposed to handle negotiations between the two parties. There are, however, cases in which the contractor has been in a good relationship with the customer previously, leading to assumptions in the process, as well as informal handling of activities in the project. This may lead to misunderstanding between the customer and the contractor, causing project failure.&nbsp.

The case involves two organizations. Nita Light and Power (NLP), and Special Products and Integrated Services Division (SPIS). The two companies had a good relationship in the past, as SPIS had performed a number of services for NLP successfully during the 1980’s. In 1989, NLP needed three of its generators to be serviced. Therefore, NLP got a contract with SPIS. They developed a fixed price contract which initially totaled to $500,000 (Filliben and Colley 470).

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Before the project could commence, Reggie Brown, the project manager, noticed a problem in time allocation of the badging process. He immediately contacted Sam Goodsen, NLP’s site manager about his concern. So, Goodsen requested for the budget and the schedule for the process and gave a go-ahead for the time-and-materials billing. This transformed the project to a time-and-materials and Brown’s concern about time delay was resolved (Filliben and Colley 471).

The badging process, which involved a series of tests, was conducted by NLP since the utility did not want to involve SPIS in the process. This became a problem because it took longer and the generators were not handed over to SPIS on time.&nbsp.&nbsp.

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