You are tasked with building four conference rooms with standard conference features. The project scope and schedule are clearly defined. To minimize risk to the organization, what type of contract should be used to procure the needed services?
A Fixed-Price Contract is the best option for a project with a well-defined scope and schedule because:
It minimizes financial risk by setting a predetermined cost.
The contractor bears the risk of cost overruns, ensuring budget predictability.
Why the other options are incorrect:
(A) Cost-Plus-Fee contracts allow for cost adjustments, increasing financial risk.
(B) Cost-Reimbursable contracts can lead to higher costs with no guarantee of a fixed budget.
(D) Time and Material contracts are used for uncertain scopes and do not provide cost stability.
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