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Letter from customer offering incentive pay if we finish project earlier

by Rudolf Christopher Takac

We are in the middle of the project. The project is running fine, it is under control and it looks we finish all work with no delay. This morning I have received a letter from customer offering incentive pay if we finish it even earlier, How can we unanimously evaluate this offer?

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  1. You have to compare the incentive fee money with cost of ending this project earlier. Many activities at the end of project can not be accelerated, so you need to try to figure out just activities which can be accelerated. For these activities, you should find out the costs of applying of the schedule compressing methods and compare it with the incentive pay. If the costs are higher than offered incentive pay, I would not accept this offer. If costs is lower, I would reconsider all risks, previous experiences, information from knowledge base, circumstances and let steering committee to decide.
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