Which contracts has the MOST risk for the buyer.?
Submitted by Binay Anand on Sat, 08/30/2014 - 03:56
Which of the following contracts has the MOST risk for the buyer.?
A. Cost plus fixed fee (CPFF)
B. Time and Materials (T&M)
C. Cost plus award fee (CPAF)
D. Fixed price (FP)
As per headfirst Answer is Time & material but the Risk Sequence for buyer given in RITA is CPPC>CPFF>CPAF>CPIF>T&M>FPEPA>FPIF>FP.
Can someone help me to know the right answer.
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admin
Sat, 08/30/2014 - 06:00
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This is an FAQ and many posts
This is an FAQ and many posts on PMZilla about this.
Read this http://pmzilla.com/q-which-following-contracts-has-most-risk-buyer
Frances Tessler
Thu, 10/16/2014 - 21:16
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Contract Risk
I am torn with CPAF and T&M. While T&M is hybrid you general have a fixed amount for the hourly rate. You can also control the hours more. However in Cost Plus Award Fee contracts you run the risk that he will go beyond the expect fee. No mention of a cap here. I say CPAF