Is Eric’s organization liable to pay the ZAS Corporation for the work they have completed so far on the project?

Eric is the project manager of the NQQ Project and has hired the ZAS Corporation to complete part of the project work for Eric’s organization. Due to a change request the ZAS Corporation is no longer needed on the project even though they have completed nearly all of the project work. Is Eric’s organization liable to pay the ZAS Corporation for the work they have completed so far on the project?

A.
No, the ZAS Corporation did not complete all of the work.

B.
Yes, the ZAS Corporation did not choose to terminate the contract work.

C.
It depends on what the outcome of a lawsuit will determine.

D.
It depends on what the termination clause of the contract stipulates.

Explanation:

To make a payment or not to make it depends on what the termination clause of the contract stipulates. Answer option A is incorrect. The termination clause of the contract is the best input for this decision. Answer option B is incorrect. While the ZAS Corporation did not choose to terminate the contract work the contract terms may stipulate other terms for early termination. Answer option C is incorrect. There’s no indication of a lawsuit yet. Reference: Chapter 12. A Guide to the Project Management Body of Knowledge, (PMBOK Guide), Fourth Edition, ISBN.9781933890517, Section 12.4.