QuestionQ315

Managing Projects

Eric is the project manager for the NQQ Project and has engaged the ZAS Corporation to perform part of the project work for Eric's organization. Because of a change request, the ZAS Corporation is no longer required on the project, although it has finished nearly all of the project work. Is Eric's organization responsible for paying the ZAS Corporation for the work it has completed so far on the project?

  • A Yes, the ZAS Corporation did not choose to terminate the contract work.
  • B It depends on what the termination clause of the contract stipulates.
  • C It depends on what the outcome of a lawsuit will determine.
  • D No, the ZAS Corporation did not complete all of the work.
Explanation

The contract’s termination clause determines the parties’ rights and obligations when work ends before completion, including whether and how the contractor is compensated for work already performed.

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