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TOPIC: Type of Contract--Procurement Management

Type of Contract--Procurement Management 7 years 5 months ago #100

  • Arslan Hamid
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which contract has high Risk for buyer
CR
TM
FP

What i know is CR High TM Medium FP low
Please tell me i am right or wrong

Re:Type of Contract--Procurement Management 7 years 5 months ago #104

  • Cornelius Fichtner
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Arslan,

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

Re:Type of Contract--Procurement Management 7 years 5 months ago #109

  • Arslan Hamid
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I am preparing for PMBOK3 and i have your mp3 format podcast.Can you please explain me which contact got the more risk according to buyer prespective...
What i have learn
CR High
TM Medium
FP Low

Thanks

Re:Type of Contract--Procurement Management 7 years 5 months ago #111

  • Cornelius Fichtner
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Arslan,

I apologize! I didn't realize that you had the 3rd edition.

Please also disregard the abbreviations of the contracts that I mentioned earlier. They are from the 4th edition.

So under this light, you are right that FP = low, TM = medium and CR = high from the buyers perspective.

You can also read the following article - they explain each contract type and the risk involved:

zo-d.com/blog/archives/taking-the-pmp-ex...-contract-types.html
Until Next Time,
Cornelius Fichtner, PMP, CSM
President, OSP International LLC

Re:Type of Contract--Procurement Management 7 years 5 months ago #113

  • Arslan Hamid
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Thanks Please reply me another question regarding contract as well
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