Fixed-Bid Dilemma

This is a classic fixed-bid dilemma, where scope and price are locked, but reality throws curveballs. Here's how I’d handle it as a strategic project manager:

🧭 Situation Recap

Project Type: Fixed bid (scope, timeline, and cost agreed upfront)

Delay Reason: Customer dependency (e.g., delayed inputs, approvals, access)

Impact: 2 weeks of extended effort from your team

✅ Decision Framework

1. Review the Contract

   Check if the agreement includes clauses for client-caused delays, such as:

   • Change requests
   • Missed milestones
   • SLA breaches

   If such clauses exist, you’re on solid ground to raise a change order or extension claim.

2. Document the Delay

   Maintain a clear audit trail:

   • Emails requesting inputs
   • Missed deadlines by client
   • Impact on team utilization and deliverables

   This builds credibility and protects your position.

3. Engage in Constructive Dialogue

   Instead of sending a surprise invoice, initiate a conversation. Offer options:

   • Billable Extension: Charge for the 2 weeks (if contract allows)
   • Credit Trade-off: Offer partial billing in exchange for future work or goodwill
   • Absorb Cost: If relationship value outweighs short-term billing
4. Make a Strategic Call

   If the client is long-term or high-value, absorbing the cost might be a relationship investment. If the delay caused significant resource strain or opportunity cost, billing is justified.

🧮 Billing Decision Matrix

Scenario	Action
Delay clause in contract	Raise change order
No clause, but documented delay	Negotiate partial billing
Strategic client, minor impact	Absorb cost, build trust
One-off client, major impact	Bill with justification

🧠 Pro Tip

For future fixed-bid projects, include a clause like:

“Any delay caused by client dependencies beyond 3 business days will trigger a timeline and cost re-evaluation.”

Answer Framework

1. Acknowledge the Fixed-Bid Nature

   “Since this is a fixed-bid project, the scope, cost, and timeline are usually agreed upon in advance.”

2. Highlight Customer Dependency

   “However, in this case, the delay was caused by customer dependencies, which impacted the agreed timeline.”

3. Emphasize Transparent Communication

   “The first step I’d take is to document the dependency, its impact on the schedule, and share this transparently with the customer as soon as the risk appears, not just at the end.”

4. Discuss Options, Not Just Billing

   “Rather than directly billing for two weeks, I would discuss options with the client:

   • Adjusting the timeline without additional cost (if relationship-building is the priority).
   • Negotiating change requests or an amendment to the contract to cover extra effort.
   • Offering a hybrid solution, such as sharing part of the cost if appropriate.”

5. Show Balanced Judgment

   “The final decision would depend on the contract terms and client relationship. If the contract explicitly states that client delays can lead to schedule/cost adjustments, I would justify billing the customer. Otherwise, I’d use it as an opportunity to strengthen the partnership while ensuring lessons are documented for future contracts.”