Company PH is a service provider to customer MG. PH is currently managing 50% of MG’s IT and three other vendors are managing the remaining. There are 100’s of projects every year that’s bid by these vendors to deliver.
A little bit about the MG way of working…
MG’s umbrella contract states that the warranty expires only after 90 days of continuous no-bugs. So, MG’s managers have a history of holding onto some bugs for 80 days, after the last bug fix and reporting it. This way they try to make it a perpetual warranty.
MG’s managers are constantly looking to chip the estimates of the customer since they already have an agreed rate card.
All projects are typically Fixed Price, with penalties in the umbrella contract.
The Project Alpha
PH has won this project which is about 350K USD, with a duration of 6 months followed by 3 weeks of Acceptance. Alpha is about 5 months into delivery and the PM senses that the project can potentially finish 2 weeks ahead of schedule.
What is your assessment of the opportunity and the risk here? Do you recommend the PM to notify the customer of an early Acceptance or not?