KomFi. Academy

hard · Project Management Professional Predictive (Plan-Driven)

Harborline Transit's FPIF contract uses a 'subjective' award fee for safety performance alongside the 'objective' cost incentive. A buyer-directed change increases the safety risk.

How should the PM address this?

  1. Escalate the safety risk to the Harborline CEO for immediate intervention, before confirming the relevant stakeholders agree.
  2. Convert the safety fee into a fixed penalty to ensure compliance.
  3. Eliminate the subjective fee to simplify the final settlement math.
  4. Update the safety award fee criteria to reflect the new risks and ensure the seller is incentivized to maintain high standards.

Sign up free to see the explanation and track your rank →

More Project Management Professional Predictive (Plan-Driven) practice

All Predictive (Plan-Driven) questions · Project Management Professional study guide · Project Management Professional glossary · Project Management Professional flashcards