You Are the Program Manager for Your Project

question 308

Multiple Choice

You are the program manager for your project. You are working with the project managers regarding the procurement processes for their projects. You have ruled out one particular contract type because it is considered too risky for the program. Which one of the following contract types is usually considered to be the most dangerous for the buyer?

• A) Cost plus incentive fee
• B) Time and materials
• C) Cost plus percentage of costs
• D) Fixed fee

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Definitions:

Wages

Payments made to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.

Commencement

The act or time of beginning; refers to the start of something, such as a process, event, or period in time.

Bankruptcy Legislation

Refers to laws that govern the process through which individuals or entities who are unable to meet their financial obligations can seek relief from some or all of their debts.

Dual Purpose

Refers to an item or activity designed for two distinct functions or goals, often seen in tax, legal, or functional contexts.