Fixed-Price Incentive Fee Contract

PMP Formula of the Week: Fixed-Price Incentive Fee Contract

September 28, 2015 Guest Authors Cisco, Cloudera, Featured, Professional Development, Project Management, Routing & Switching, Technology, Training in Business

As the seller, you are completing a project under a fixed-price incentive fee contract, with a fixed price of $130,000. The incentive (or penalty) is set at $2,000 per week for each week that the project is under (or over) schedule. When you deliver the project two weeks late, how much money will you receive?