Question

You are a junior​ executive, and you were just in a meeting where it was decided to outsource some development work. the provider was asked for a fixed price​ contract, and the company decided to withhold payment of part of the fee until the services are in place and working properly. why is this a good​ idea?

Answer 1

Firstly, this is a good idea due to the fact that the job has not been carried out to a satisfactory standard, once this standard is met then the company will receive the rest of their fee. Secondly, if these two companies are to work together in the future then it is necessary to show the other business the standards that are required to work with the company.