fbpx

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

Name
E-mail
Your e-mail address will never be displayed on the site.
Subject
Message

Topic History of : Choosing the right type of procurement contract for the exam.

Max. showing the last 6 posts - (Last post first)
6 years 1 week ago #13647

Anonymous

's Avatar

Thanks!
6 years 1 week ago #13624

Steven Mudrinich, PMP

Steven Mudrinich, PMP's Avatar

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
6 years 1 week ago #13622

Mythile Thirukesan

's Avatar

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.

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