which contract type ?
Submitted by pmasp1 on Wed, 11/30/2011 - 22:48
A project manager is in trouble because he took on a contract that overran its budget, and now he has to eat
the cost out of his own budget. Which of the following BEST describes his contract?
A. Time and materials
B. Fixed price
C. Cost plus incentive fee
D. Cost plus percentage of cost
Forums:
kmrk
Thu, 12/01/2011 - 02:53
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Seems to be a fixed price,
Seems to be a fixed price, thats why the PM needs to manage the overrun with his own budget, so the answer is B.
pmasp1
Thu, 12/01/2011 - 15:09
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Question doesnt say seller or
Question doesnt say seller or buyer ..So I assume this is buyer ..
Buyer's project can overrun the budget in case of cost + % cost ..To me the correct answer is D..
As per test the correct answer is C . Can anybody please explain it ...
kmrk
Thu, 12/01/2011 - 16:10
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I think this question is
I think this question is about a PM who is a seller, "A project manager is in trouble because he took on a contract that overran its budget" from this sentance its very clear that the PM is a seller and the better choice should be B.
kmrk
Fri, 12/02/2011 - 03:11
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Hey do you agree with this
Hey do you agree with this answer? pls let me know.
admin
Sat, 12/03/2011 - 18:14
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Fixed price.
Fixed price.