A contractor is working on a fixed price contract that calls for a single, lump sum payment
upon satisfactory completion of the contract. About halfway through the contract, the
contractor’s project manager informs their contract administrator that financial problems
are making it difficult for them to pay their employees and subcontractors. The contractor
asks for a partial payment for work accomplished. Which of the following actions by the
buyer is most likely to cause problems for the project?
a. starting partial payments for work accomplished.
b. making no payments because it would violate the conditions of the contract.
c. paying for work accomplished to date.
d. negotiating a change to the payment conditions in the contract.
Tuesday, May 20, 2008
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