hard · Project Management Professional predictive
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?
- Escalate the safety risk to the Harborline CEO for immediate intervention, before confirming the relevant stakeholders agree.
- Convert the safety fee into a fixed penalty to ensure compliance.
- Eliminate the subjective fee to simplify the final settlement math.
- Update the safety award fee criteria to reflect the new risks and ensure the seller is incentivized to maintain high standards.
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