medium · Project Management Professional Predictive (Plan-Driven)
In a Coveport Logistics predictive project, the PM determines that a vendor's FPIF contract has reached the ceiling price. The vendor claims that unforeseen 'Enterprise Environmental Factors' caused the overrun and demands additional payment.
What should the PM do?
- Inform the vendor that 'Fixed Price' means the risk is 100% theirs and no further analysis is needed, before confirming the relevant stakeholders agree.
- Submit a change request to the CCB to convert the contract to Cost Plus Fixed Fee (CPFF).
- Review the contract's 'Force Majeure' and change provisions to determine if the claim is valid under the existing terms.
- Pay the vendor from the project's management reserve to avoid a stop-work situation.
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