procuremen t and type of contracts

Submitted by y0zh on Thu, 04/04/2013 - 08:45

While managing a project, you decide to contract to an external enterprise. You enter into a contract where you pay the external enterprise a set amount (as defined by the contract), irrespective of the seller's costs. What would best describe this type of contract?


A Fixed Price (FP)


B Firm Fixed Price (FFP)


C Lump-Sum (LS)


D Fixed-price-Incentive-fee (FPIF)


 

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y0zh

Thu, 04/04/2013 - 09:55

Which of the following statements best describes Time & Material (T&M) contracts?


A T&M contracts are hybrid type of contractual agreements that could contain aspects of both cost-reimbursable and fixed-price type arrangements


B T&M contracts are the best form of contracts when the scope of work and the number of hours of work for a specific resource category is clearly known.


C T&M contracts are the same as Fixed Price contracts except that the total value is calculated using Fixed rates and the effort data is available to the purchaser as well as the seller. Once this is agreed upon, it becomes the same as a Fixed Price project.
 


D T&M contracts are very risky since the value of the project is not known. It is best to go in for a fixed price (FP) contract.

sspawar

Thu, 04/04/2013 - 10:47

 C

A

Renji2013

Thu, 04/04/2013 - 11:10

Hi PAwar sir,


 


what is this Lumpsum contract ?. Isnt it same as FP ?


 


Renji

sspawar

Thu, 04/04/2013 - 11:39

 as pe pmbok FFP a type of FP, option is B , not C.

thanks to remind me.