
1
chapter one
Redening projects
“Why spend money if not to make money?”
You have just been made manager of a project that has a budget of $5 million.
You are told that we are doing this project under a xed price contract.
Thecontract calls for our company to be paid $4 million upon delivery.
What’s the matter? Why are you looking at me like that? You have a question,
you say?
If you don’t, then you certainly should. Who in their right mind would
ever pay more for a project than the value they expect to get from it?
Asophisticated project manager would immediately ask what’s going on.
Isthere some value other than the payment from this part ...