ABC Corporation has recently given out a nine-month contract to a construction subcontractor.

ABC Corporation can take several steps to address the issue of a subcontractor not reporting costs according to an appropriate Work Breakdown Structure (WBS) level without incurring additional funding. Here are some actions the corporation can consider:

1. Review the Contract:
   • Start by thoroughly reviewing the terms and conditions of the contract with the subcontractor. Ensure that the contract clearly defines the reporting requirements and any specific WBS levels or cost breakdown structures that the subcontractor is expected to adhere to.
2. Communicate Expectations:
   • ABC Corporation should communicate its expectations regarding cost reporting and WBS compliance to the subcontractor. Explain the importance of accurate and consistent reporting for effective project management.
3. Collaborative Approach:
   • Engage in a collaborative discussion with the subcontractor to understand the specific challenges they are facing in complying with the WBS requirements. Identify any legitimate constraints or limitations.
4. Explore Alternative Solutions:
   • Work with the subcontractor to explore alternative solutions that do not require additional funding. This could include adjustments in their reporting processes, software tools, or resource allocation to align with the specified WBS.
5. Provide Training or Support:
   • Offer training or support to the subcontractor if the issue is related to a lack of understanding or capability in reporting according to the WBS. Training can help improve compliance without the need for additional funding.
6. Document and Formalize Changes:
   • If changes to the cost reporting procedures are required, ensure that these changes are properly documented and formalized through a contract amendment or change order. This can help avoid misunderstandings and disputes.
7. Monitor Compliance:
   • Continuously monitor the subcontractor's compliance with the revised cost reporting procedures. Regular checks can help ensure that the required WBS levels are adhered to throughout the contract duration.
8. Consider Contractual Measures:
   • If the subcontractor remains non-compliant and unwilling to cooperate, ABC Corporation may consider contractual measures, such as imposing penalties for non-compliance or seeking legal remedies as stipulated in the contract.
9. Seek Legal Advice:
   • If the situation escalates and contractual disputes arise, ABC Corporation may consult with legal counsel to explore available options and ensure that its interests are protected.
10. Performance Improvement:

• Encourage the subcontractor to implement performance improvement measures that can help them comply with the WBS requirements without significant additional funding.

It's essential for ABC Corporation to strike a balance between enforcing compliance with contract requirements and maintaining a collaborative and constructive relationship with the subcontractor. Open communication and a solution-focused approach can often help resolve such issues more effectively while mitigating the need for additional funding.