What is correct about a contract

I practiced Rita's question and also questions from Exam Central.

As per Rita, whenever the scope is not clear, Cost Reimbursable contract is best choice.

And as per Exam Central, whenever a scope is not clear, T&M contract is best choice.

I am really confused.

Here is a sample from Exam Central -


You are a manager....Before the contract negotation, the buyer confiedes in you that design is not finalized and they want you to start the work with incomplete specifications. What type of contract should you ask for ?



C. T&M


Exam Central Answer - C


And here is a sample from Rita -

.... is asking your help to decide for a contract type for his new project. You want to protect your company from financial risk, and you have linmited scope definition. What is the BEST contract type to choose ?



C. T&M



Rita's answer - B


Experts, any help here ?


 to answer the question, we have to understand whether we are buyer or seller in the situation.

fo first question, we are the seller whereas for second one we are the buyer.

Answer is totally based on if you are looking the situation from Buyer or Seller Point of view, With respect to PMP exam that is very important thing to remember I cannot emphasize enough how important is to first figure out if the question is asking from Buyer or Seller Point of view.  

cnppmp's picture

q1) C

q2) B

Such questions should be dealt carefully understand the stand , it's buyer or seller.


CN Patil



How can we say from just the supplied portion of the 2nd (Rita's) question that we are the buyer? I presume that you need to know the missing portion, right? I don't have this book, so just wanna confirm that this is the case!




 Yes, the 2nd question is from buyer's point of view.


That is not the point. I know that we need to look for buyer vs seller perspective. Pls read my earlier comment.

My question is how do we identify that we are the buyer in this case just from the supplied info, or do we need to refer to Rita's book for the entire question.

Pls note that the initial sentence has been chopped off in the first post.

If you can identify from the question that we are the buyer, can you or someone pls clarify how?






cnppmp's picture

If nothing specific mentioned, PMIism says you, as PM, from the buyer. Seller, It conveys clearly, as in your question #1, then you have to see the picture from selker perspective.

PMP exam is all about situational questions and it tests your comprehensive reading skill.



CN Patil



CN Patil, thanks for the clarification reg using PMIism in case nothing specific is mentioned in regards to buyer or seller!