1. For the following types of undertakings, which contract modes are most appropriate? Be prepared to explain the rationale behind your choice. We want to order a pencil manufacturer to produce 20,000 pencils for us We want to have a 300 meter bridge built to span a local river We want to have a contractor design a brand new circuit board that has state-of-the-art capabilities We want to contract out work to operate our small factory

2. Describe the relative benefits and weaknesses of a CPIF contract vs. a CPAF contract

Questions: 1. Marketing Vice President Roger Smith angrily states: "I am the customer". As such, he expected the contractor to follow his request. What are the merits of Mr. Smith's assertion? To what extent is the contractor obliged to do what the customer orders? 2. How should Francis handle the unexpected request from Roger Smith? 3. How can effective change control procedures help Steve and Francis deal appropriately with this situation? 4. If Francis accedes to the request of Roger Smith, what would be the possible consequences?