We explain this in detail in episode E12.01 Plan Procurements.
Please watch that episode for the explanation. We show a table that explains who (buyer or seller) has more risk for each contract.
Also, here are the official abbreviations for the contracts:
Firm Fixed Price: FFP
Fixed Price Incentive Fee: FPIF
Fixed Price Economic Price Adjust: FP-EPA
Cost Plus Fixed Fee: CPFF
Cost Plus Incentive Fee: CPIF
Cost Plus Award Fee: CPAF
Time and Material: T&M
Until Next Time,
Cornelius Fichtner, PMP, CSM
President, OSP International LLC
Moderators: Yolanda Mabutas, Ahmed Amin, Scott Gillard, Mary Kathrine Padua, ERIC BARTLETT, Gail Freedman, Kevin Nason, Steven Mudrinich, PMP, Mark Wuenscher, PMP, John Wolverton, Tracy Shagnea, PMP, Jada Garrett
This interview with Simona Fallavollita (LinkedIn Profile) was recorded at the magnificient Project Management Institute (PMI)® Global Conference 2017 in Chicago, Illinois. We discuss the how, what, why and when of the changes that are coming to the PMP exam.