Question on Cost-reimburssable contracts
Submitted by Palmtree on Wed, 04/24/2013 - 19:55
A project manager must have some work done by an outside contractor. This work has a great deal of risk associated with it, and it has become very difficult to find a contractor willing to take on the job. Which of the following types of contract would offer the greatest incentive to the contractor?
Cost plus percentage of cost as an award fee
Cost plus fixed fee
Cost plus incentive fee
Firm fixed price
Answer: A
Why the correct answer is A, not C. What's the difference between A and C?
Thanks.
Forums:
sspawar
Thu, 04/25/2013 - 00:29
Permalink
in pmbok award and incentive
in pmbok
award and incentive contract are described, based on subjective and objective aspect respectively.
in this question you may undrstand that
award at overall contract work, in broader prospect.
where as incentive is for part subject (objective).
definition / difference of subjective and objective can be referred from wiki