Software Technology Park: Contract Management

The construction contract for the seventeen storey STP building was awarded to China State Construction & Engineering Corporation (CSCEC) as it was the lowest and technically qualified bidder. The contract was awarded for a fixed fee of PKR 2.99 billion (USD 49.83 million) with a completion time...

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Bibliographic Details
Published in:Asian journal of management cases 2014-03, Vol.11 (1), p.59-66
Main Authors: Sheikh, Rizwan A., Jalil, M. Naiman, Khan, Khalid A.
Format: Article
Language:English
Online Access:Get full text
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Summary:The construction contract for the seventeen storey STP building was awarded to China State Construction & Engineering Corporation (CSCEC) as it was the lowest and technically qualified bidder. The contract was awarded for a fixed fee of PKR 2.99 billion (USD 49.83 million) with a completion timeline of eighteen months. However, after nine months of construction, the contractor approached Punjab Information Technology Board (PITB) and asked for relaxation on high value items like elevators, escalators and building glass. The CSCEC asked PITB to allow them to change the country of origin (manufacturing) and brand name on these items while they ensured that all technical specifications would be met and there would be no compromise on quality. The dilemma Jasem faced was whether to allow CSCEC’s request or not. He also had to understand the consequences of whatever decision he made.
ISSN:0972-8201
0973-0621
DOI:10.1177/0972820113520210