QUESTION FIVE Project Managers, in both public and private sector, are facing more and more contract management issues as contract management becomes an integral part of project management and business in general. These issues arise from contracts, which have become an essential part of today's high speed, multilateral business culture. The fact that organizations are facing increasing pressure to reduce costs and improve financial and operational performance, while new regulations and globalization are increasing in volume and complexity. In your words; (a) Define the term 'Valid contract' and outline the main requirements that must be fulfilled before an agreement can be regarded as contractually binding. [6 Marks] (b) Outline and explain six (6 No.) circumstances under which a contract can be discharged (terminated) giving an example in each case. [12 Marks] (c) Terms and conditions in contracts will always have implied and express terms. State the main differences between implied and express terms in a contract. [7 Marks] A) An employee was tayked with developing six new procedures for a sales group The project must be completed within 4 weriks duration. 2co-man hours is the estimated labor resouice commement. What is tho projoct performance in terms: a. 1. Cost variance; II. Schedule variance II. Cost vasiance index and IV Schedute variance index at week 2 given that five procedures have been written and 100 -man hours consumed. Assume t2hour rate [Hint Determine the amain values to he pin the calculation is Pianned Value (PV), Earned Value (EV) and Actual Cost {AC)} [11 Marks B) Oulline the fundamentai cifferences betveen foxed-price and cost -plus contracts on a project giving examples in each case. [5 Marks] C) For what kinds of projects wauld you recommend that fixed price contracts be used and a coat plus contract be used? Give justification for your answer in each case [4 Marks]