Contract Types
Submitted by mbhatt on Thu, 02/21/2013 - 15:45
Looking for an explanation on following question-
If you are working on a project with constantly changing scope, which contract type would work best when hiring an outside vendor to complete a portion of the work?
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Cost reimbursable
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Lump sum
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Time and material
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Fixed price
Correct Answer is 'C'. Wondering why 'Coist reimbursable' is not correct. Any help would be appreciated.
Thanks!
Forums:
admin
Fri, 02/22/2013 - 04:13
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For constantly changing scope
For constantly changing scope its t&M
Cost reimbursable is very high risk, since you dont know the scope to get even initial cost estimate.
sspawar
Fri, 02/22/2013 - 04:13
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at this point , i would
at this point , i would suggest to go through all types of contracts and related, KA question banks and explanations.
enhance your knowledge.
cost rembursible is one time projected estimated cost. In case of changes in scope, it will not be viable to keep continue.A seperate ammendmend is required then.