Contract Question

Submitted by chullan88 on Thu, 06/19/2014 - 07:33

If you are requesting a vendor quote for a defined scope, what is the recommended contract type?

Fixed price

Commission

Cost reimbursable

Time and materials

The answer given is Fixed Price

But my doubt is that RFQ is sent only for Time and Material??

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Sundara.damaraj...

Thu, 06/19/2014 - 13:06

Hi,
Don't mix RFQ with this question.

The question asked here is for a well defined scope,
what contract type you recommend.
The answer is "Fixed Price". Coz, the cost risk is not with the buyer.
Buyer has to ensure that seller is delivering as per Procurement SOW and he is not adding any change requests.