Acme Corporation has recently given out a nine-month contract to a construction subcontractor. At the end of the first month, it becomes obvious that the subcontractor is not reporting costs according to an appropriate WBS level. Acme Corporation asks the subcontractor to change its cost reporting procedures. The subcontractor states that this cannot be done without additional funding. This problem has occurred with other subcontractors as well. What can Acme Corporation do about this?
- Explain how you would resolve this issue.
- Describe the advantages and disadvantages of this solution in your scenario.
Explain why this would be the best solution for the scenario you described versus the other available solutions.