Commercial Contract Management Case Study Report

1. Introduction

     This paper seeks to prepare a report recommending a contract strategy for the project described in the given scenario based on the best alternative that would be produced from analysis.

2. Analysis and discussion for the alternatives

      The possible alternatives include the option to rehabilitate or restore the church and the option to convert the same to a conference centre and for public entertainment as proposed.

        For the first alternative, it appears from the case facts that rehabilitation is the preferred choice by the people in the community as supported by the fact that a group of residents from the area have banded together to try to save the church.

With the efforts to save the same church by the residents in the area, it would mean that all other alternatives become secondary.  As per case facts, the residents have raised about a quarter of the money needed for the repair of the church and that they have applied for lottery and other grants to cover the rest.

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The intention is very clear to repair, restore, or rehabilitate the church as far funding is concerned.  That the church was about 200 years old, was empty and vandalized and that many of its original features have been damaged could not justify conversion of the same church since the residents are willing to have the defects repaired.

        For the second alternative, which is to convert the church as conference centre and for public entertainment, there is no indication on where the funds to construct or convert the same will come from and there is no indication about the possible revenues (Meigs and Meigs, 1995) that may accrue from the conversion.

Not support is coming from the residents to convert the same except the one proposing.  Since case facts provide that one of the group of residents has professional qualifications and needs to be involved in the proposal for the conversion, the same could not be taken as expression of support and if this qualified group will not support the conversion , neither will their involvement in conversion plan add to the argument to convert the church.  There is no good hint to proceed in converting the church.  Thus, conversion using the funds form the church restoration could not be done since that would amount to misappropriation and misuse of funds.  If the funds available for church repair, is used in conversion, and given the fact the same fund is raised by residents, those who will convert the same would be facing possible liabilities or ostracism from those supporting church repair. If the people who raised the funds could be compared to people Congress who appropriate funds for a government project, violating the wishes of these people in case of conversion would be  equivalent to illegal use of public funds (Wing-Hung and Wickins, 2002).

      Moreover, to convert the church for conference centre or public entertainment would take the nature of public place, which assumes the case of public expenditure. There is no indication in the case facts that government in the community is supporting the conversion. Unlike in the case of church restoration, with or without the go signal from government authorities, restoration could be done using funds raised by the residents.

2.3 Reasons for recommendations

        Obviously, this researcher recommends rehabilitating the church, because it is the only one that is supported by the people.  Moreover, the church building has a historical and architectural significance being there for about 200 years.  Although the case facts say that that the church has been empty and badly damaged by vandals it does not meant that its original plan to be used as a church, could not be restored.  As explained earlier, the support of the residents, the funding raised and to be raised from lottery and other grants to cover the things to be prepared all justifies the recommendation for restoration.

        As to the proposal that the church be converted for use as a conference centre for public entertainment cannot be all together be dispense with since even if the church is restored part of it could be used for conference and public entertainment if the same will not contradict the rules of the church.

2.4 State which party should bear the main risks in the strategy recommended

       The party, which should bear the main risks of the strategy or plan recommended, would include those that will lose something if the rehabilitation of the church fails.  This party could include the residents who have banded to raise funds and the institution and people, which will help in the rehabilitation. This is because there would be loss of opportunities if the church will not be successful is attaining its purpose.   There is no one who can really tell what the future is but the case facts provide that some people have raised a certain amount already for the restoration of the church building and additional funding could come from other sources thus the people appear ready to take the risks. Thus, all directions point to restoring the church.

2.5 Assumptions about the project

       This researcher assumed the following:  First, the funding of the proposal to convert into conference centre and for public entertainment is not very clear but it appears that there are funds raised already for the restoration of the church building.  It is also therefore assumed that additional funds would be forthcoming for the completion of the project on restoration once the project is started. This is more plausible than when the project is converted to a conference centre and for public entertainment where there is no available information that would assure the source of funding and generation of revenues from such operation of conference centre should the conversion push through for the maintenance of the structure.

3. Conclusion

      It can be concluded that the restoration of church building is a better alternative since there are more favourable conditions that would support said alternative.  These include the fact that funds were partly raised, that a group of residents have already banded together to save the church and that they have raise a quarter of the money needed.  The fact also that they have applied for lottery and  other grant to cover the rest and are in need of repair points to the fact the restoring or repairing the church  building is indeed a better option. If ever the same is indeed restored as church, there is no prohibition that the same church building could be used by people occasionally as conference centre or if the purpose of the conference will no contradict religious purposes. It would be therefore attaining two purposes at the same time.

    Converting church into a public building for conference and public entertainment is more than putting up the building. It should involve the right reasons for doing the same. The fact that the move to restore the same is evidently supported, it should not be difficult to decide in favour of doing what is legal, practical and financially possible.

References:

Case Study with given Scenario

Meigs and Meigs (1995) Financial Accounting, McGraw-Hill, London, UK

Wing-Hung, C. and Wickins, R. (2002) Towards an Accountable and Quality Public Administration in Hong Kong: Redressing Administrative Grievances through the Ombudsman; International Journal of Public Administration, Vol. 25