Introduction

When a company makes a commitment to initiate a project, resources need to be allocated. As such, an analysis should be performed to determine if the project would have a favorable impact. This analysis would utilize the financially focused project management (FFPM) tools presented in Chapter 11.

Often a project requires the support of subcontractors. In order to evaluate and establish prices for major subcontracts, a Request for Proposal (RFP) is prepared and sent to potential contractors. An RFP may also be called a Request for Quotation (RFQ).

Every company needs to determine the prices at which it sells its products or services. Many of the procedures that apply to proposing new contracts can also be applied to the process of establishing prices. In either case, there is usually an historical basis to forecast cost associated with the new product or project.

Commercial Contracting ^[1]

Perhaps the greatest virtue and challenge of doing business in this country is that the U.S. is a big market 50 states, each with its own set of laws. But commercial dealings are interstate, crisscrossing the borders. Hence, the Uniform Commercial Code (UCC) has been adopted by most states to assure that companies performing commercial contracting are all playing by the same set of rules.

One of the most significant portions of the UCC is that which has to do with the heart of business: buying and selling. It explains what can and cannot be done, what rights companies have and what risks...