Recognizing Contract Risk and Opportunities Memo
Melissa Merchut
University of Phoenix

Recognizing Contract Risk and Opportunities Memo
Span Systems is a prestigious leader in banking software projects. Span Systems is currently working on a one-year contract with Citizen-Schwarz a large German Bank. The contract with Citizen-Schwarz is worth six million and there is potential for Span Systems to also obtain Citizen-Schwarz’s e-CRM project. An issue has arisen between both Citizen-Schwarz and Span Systems in regard to the quality and schedule of deliverables. Because of the issues with the project Citizen-Schwarz has requested to have Span Systems transfer all unfinished codes, and asserted the rescission of the contract. In this paper I will identify what a manager might do to avoid these risks, to minimize liabilities, and to benefit from opportunities. Identify the legal principles and relate specific measures managers might take to minimize legal risk or realize legal opportunities. Evaluate alternatives to resolve problems identified in the simulation. Explain which alternative approach you believe is best and explain why.
With Citizen-Schwarz advising Span Systems that the quality and schedule of deliverables has been unacceptable for several months is a concern. This situation is due to lack of communication and also lack of management on Span Systems side. In order for Span System to avoid this issue in the future, they must set up or fine tune their project management. A project manager will have the responsibility to make sure the employees are on task and on time. The project manager will also need to stay in communication with the contracting company to confirm quality compliance to his or her standards. This will help Span Systems in finding issues and resolving them immediately. By improving the communication Span Systems will be more of a partner to Citizen-Schwarz on the...