On what scenario, i should choose Cost reimburse contract Vs T&M

Submitted by anand_anan2k on Tue, 11/01/2011 - 07:12

Hi All,

Both PMBOK & Andy Crowe's book suggests that, when the scope isn't defined completely during initial phase of the project, then choose Cost reimburse contract or T&M. Do we have any specific criteria for Cost reimburse and T&M ? 

Please advise !!!

Thanks,

Elangovan

Forums: 
PMP / CAPM exam Question bank
  • Log in to post comments
  • 1208 reads

rishiarien

Wed, 11/02/2011 - 09:36

While it is true that both the contracts are useful when the scrop of the project isn't defined completely initially, the following could provide some guidelines as to when we can opt for Time and Material contracts:


1) When there is an urgent need to start the project work.


2) When the expected duration is brief


3) When hiring additional resources to augment your staff


Regards


Rishi


 

anand_anan2k

Wed, 11/02/2011 - 23:45

 Thanks Rishi !!!

admin's picture

admin

Thu, 11/03/2011 - 06:45

Cost reimburseable makes sense when the project involves more material and less labor . T&M can be for case when there is more labour and less of material.


Like if your project is setting up military base and it only involves procurment then you can go for Cost reimbersable contracts.