fbpx
Do you need customer support or technical assistance? Click here to submit a support ticket...

TOPIC: Choosing the right type of procurement contract for the exam.

Choosing the right type of procurement contract for the exam. 4 years 6 months ago #13622

  • Mythile Thirukesan
  • Mythile Thirukesan's Avatar Topic Author
  • Visitor
  • Visitor
I'm having a hard time choosing between T&M and CPFF.

I understand FFP is beneficial for buyer if scope is detailed and known and a risk for seller.

I generally understand that if your not too sure of the scope CPFF is the better choice. But now I'm getting examples in practice questions when T&M answers are contradictory. One says you use T&M when it's something new and hasn't been done yet before... And another site says don't use T&M because you don't know how much they will charge you for time. Very confusing.

Choosing the right type of procurement contract for the exam. 4 years 6 months ago #13624

  • Steven Mudrinich, PMP
  • Steven Mudrinich, PMP's Avatar
  • Offline
  • Expert Boarder
  • Expert Boarder
  • Posts: 126
  • Karma: 7
  • Thank you received: 25
Mythile,

The T&M contract is a "hybrid" of fixed price and cost plus contracts. Its mostly used when the scope is initially poorly defined or when there is no defined end point for the work. It does not include an incentive like a CPFF. A CPFF also has a defined time period for the work.

- Steven

Choosing the right type of procurement contract for the exam. 4 years 6 months ago #13647

  • Anonymous
  • Anonymous's Avatar Topic Author
  • Visitor
  • Visitor
Thanks!
Moderators: Yolanda MabutasMary Kathrine PaduaJohn Paul BugarinLisa Sweeney PMPHarry ElstonBrad Pennington, PMPKyle Kilbride, PMPJean KwandaThomas Pinckney

OSP INTERNATIONAL LLC
OSP INTERNATIONAL LLC
Training for Project Management Professional (PMP)®, PMI Agile Certified Practitioner (PMI-ACP)®, and Certified Associate in Project Management (CAPM)®

Login