I am preparing for my exam and I find your updates very useful to promote my understanding. I encountered a problem based on the FPIF, but it is not a matter of directly using the calculation of the PTA “. I don`t know how to deal with those kinds of issues. “A fixed-price incentive tax (FPI. The contract has a target cost of $130,000, a target profit of $15,000, a price target of $145,000, a maximum price of $160,000 and an 80/20 share report. The actual cost of the project was $150,000. How much does the salesman make? If you could help yourself with an update in the next few days, that would be great. Thank you very much! Greetings, Shyamala You use a time and equipment contract if the delivery contract is “hours of work.” In this case, the project manager will provide the salesperson who provides the required qualifications and experience to the staff. In this method, the service provider should provide a detailed schedule and allocation of resources to the project.
In addition, all costs should be properly reported and reported regularly to the supplier. I just saw the series of e-mails exchanged. I have a fundamental disagreement on one of the points raised by a reader, that is, with respect to the PTA. I think the PTA is a variant not of FPIF (as the textbooks want us to believe), but of CPIF, the simple reason is that if we cannot speak of “incentives to save on TARGET COSTS”, on the one hand, and “fixed price” on the other, in the same breath. This raises the question: “What then are the INCENTIVEs of the FPIF?” My answer is that FPIF incentives are limited to “time savings” (i.e. past deliveries) and would not include those for “material cost savings” – they would be listed as “bonuses.” On the other hand, a delay in delivery would result in the recovery of the liquidated damages. I touched on this in the monthly newsletter of the Bangalore PMI chapter last year, and almost all of them, including many academics, with whom I have spoken, agree with me. That depends.
If you want to see if you need to offer for a contract, you can search by analogy or parametric. However, if you bid for a project, go from the bottom up. Fixed-price contracts require the availability of at least two or more suppliers with the qualifications and performance historians to ensure compliance with project requirements. The other requirement is a volume of work that will most likely not change. Develop a clear volume of work on the basis of good information, establish a list of highly qualified bidders and develop a clear contract that reflects the fact that the volume of work is an essential aspect of a good fixed-price contract. As a project manager, you need to be aware of the different types of contracts and the legal aspects of projects. Imagine that you will have to relocate a process or product to third parties or lenders in the middle of your project. What kind of contract would you use for the third party? Situations like this are the reason why project managers need to have a good understanding of many types of contracts in order to easily manage contract negotiations.