Piepsysteem/en

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The Alert System (piepsysteem)

What is it?

A pro-active alert system

When?

In projects where: 1. a fixed price is deemed too risky for the supplier or too random, and 2. commitment/effort based on exact costing (hours and invoicing) is not desired by the supplier.

How it works

The supplier (ourselves externally to our customers) issues a direct alert if the indicated estimate can't be realized. Prior to commencing a phase, the client must approve the work and functionalities that need to be achieved. This is done in order to measure expectations to what has been agreed on when work commences.

Its role within a project

Implicit Agreement

The approval of the client is required if there is a substantial deviation of more than 20% on the price indication of a specific part.

If this price deviation occurs on a substantial part of the complete assignment, the client will have to approve it on forehand. The guideline in this case is 5%.

Financial

Deviations in terms of hours will have to be compensated. This is subject to:

1. obtaining implicit or explicit approval
2. the deviation being deemed considerable (more than 2 hours per item, more than 4 hours for a bundle of smaller tasks)
3. the alert system being used properly

Additions and/or alterations requested by 2Value's client at a later stage can be implemented after approval.

Next steps

These are the next steps in this process: Alertsystem - handle alerts

Example: feedback to the customer through the Alert System

Say a sub-task changes substantially and more hours are required. 2Value indicates this promptly through the Alert System with new estimates. For example:

Was: 10 hours for a particular part

Used up along the way: 4 hours on a particular task

New estimate (this is the actual alerting): 18 hours in total for that task - new style

This report offers the client flexibility and a clear budget in regards to hours that have become available. A choice can be made:

1. either the client accepts the extra costs (in this case 8 hours), or;
2. the client instructs 2Value to finish the task as close to the new target as they can in the remaining 6 hours, or;
3. the clients cancels the complete functionality and writes off the used 4 hours.

Expert assessment needed

The Alert System is the happy medium that protects both client and supplier in cases as these, where functional and technical specifications of the system are not yet available.

Further information

• For associates there are speciale voorwaarden in the interest of 2Value team performances.
• For clients there are speciale interne regels that keep our contract management flexible and clear.