Managing IT Projects: How to Pragmatically Deliver Projects for External Customers

© The Author(s), under exclusive license to APress Media, LLC, part of Springer Nature 2023

M. DąbrowskiManaging IT Projectshttps://doi.org/10.1007/978-1-4842-9243-3_12

12. Penalties – Much Ado About Nothing

Marcin Dąbrowski¹  

(1)

Nowy Wiśnicz, Poland

 

Things get worse under pressure.

―Murphy’s law

Most contracts in the IT projects are written on the basis of the “stick and carrot” rule. Thus, we have some benefits in the form of revenue that can be invoiced after a certain stage, phase, or milestone of the project has been delivered and formally approved. There are often some other bonuses such as a success fee paid if the project is finished exactly on time. On the other side of the spectrum, there are penalties calculated proportionately to the length ...