Fee is not stated as being Fixed or Variable in the Contract Data
Forecast spend on a £1.4m target is now at £2m therefore contract is £600k in pain. To date, Fee has been paid as though it is Variable (i.e. Direct Fee is applied to Defined Cost). This means contractor continues to get paid Fee.
If the Fee was fixed they would only get Fee on the original target cost plus any additional Fee generated on implemented CEs. The pain / gain mechanism has the Client taking majority of the pain so there is currently no incentive for the Contractor to stop spending as they are getting both Defined Cost and Fee on the overspend.
So my question is - what is the default position on Fee when it has not been stated in the Contract Data? Fixed or Variable? Or is the answer that because it is not stated it is the outcome most favourable to the Contractor (variable)?