Please consider the following, and offer three (3) responses between one (1) and three (3) sentences...

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Accounting

Please consider the following, and offer three (3) responsesbetween one (1) and three (3) sentences in length.

Scenario: You read in the local newspaper (ok, probably on youriPhone) that Genitempo-Cardoza Drilling (GC-D), the division ofPEMEX specializing in light, sweet crude, has tapped anothersubstantial deposit. This discovery and access means major profitsfor GC-D, and also new contracting opportunities for varioussupport companies. Schlumberger and Morgan-Ali-Perry Corporation(MAP Corp) are competing to provide cementing field services andrelated support. You are a consultant to GC-D and MAP Corp and havebeen given a waiver (possible conflicts of interest, right?) toadvise both clients in a joint meeting on three (3) issues.

If GC-D contracts with both Schlumberger and MAP Corp to provideservices as independent contractors:

1) Should GC-D carry both Schlumberger and MAP Corp under itsemployment insurance?

2) If Schlumberger is providing only labor/people to operate andMAP Corp is providing only equipment, will Schlumberger and MAPCorp need to establish contracts with each other/between their twocompanies, or just GC-D independently?

3) If MAP Corp is shipping its equipment from its Texas base toMexico, what entities (government and private) might be involved inthat transfer?

Answer & Explanation Solved by verified expert
3.7 Ratings (345 Votes)
The answer to this question is YES Under AS 7 Construction Contracts it is stated that the client or contractee can outsource its work to any number of contractors The clause of carrying insurance cover of each contractor is though the contractees choice still it is    See Answer
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