TTV is a media and entertainment company. The company is redesigning their main TV studio, and they
TTV is a media and entertainment company. The company is redesigning their main TV studio, and they would like to put a big saltwater fish tank in the middle. They contacted Bulk Reef Supply, a company specializing in the design and building of aquarium facilities. TTV wants a customized job. Particularly, they require the supplier to use particular types of materials (glass and plastic), and real reef plants and stones to be put in the aquarium. The market price of these materials is usually very variable, as it depends on their availability in each season.
After a preliminary discussion with Bulk Reef Supply, the supplier is willing to perform the job. The supplier tried to estimate how long it would take to perform the job, and their estimations are between 2 to 6 months, with an expected duration of 3.5 months. The estimation of internal costs is very variable too, as the supplier estimates potential costs to be between $ 30,000 and $ 100,000, with an expected value of $ 56,000.
Based on this information, answer the following questions:
- If you were the supplier, what type of contract would you like to sign?
- If you were the buyer, what type of contract would you like to sign?
- On what type of contract will the buyer and the supplier agree on (if you suppose they will find an agreement)?