Chapter 18. Stages of a capital project

Discussion in 'CT2' started by REJOICE, Feb 2, 2009.

  1. REJOICE

    REJOICE Member

    In practice, which one comes first between negotiating contracts and approval of project? In my view, the project should be approved before contracts are negotiated.
     
  2. Simon James

    Simon James ActEd Tutor Staff Member

    Hi - you are right, but in practice the line is often blurred. A company may start preliminary negotiations with suppliers/contractors in anticipation of a contract being approved. Indeed this may be the best (only?) way to properly understand the costs involved and hence appraise the viability of the project.
     

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