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A project manager is negotiating with a contractor. Neither has a good idea of how long the project will take, or how much the materials will cost. ?

Which contract type is MOST appropriate for this project? A. Time and Materials (T&M) B. Fixed price (FP) C. Cost plus percentage of costs (CPPC) D. Cost plus fixed fee (CPFF)

Contract Review Project Management Procurement Management
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تم إضافة السؤال من قبل Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
تاريخ النشر: 2018/06/12
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Mohammed Essam Kayed Mustafa
من قبل Mohammed Essam Kayed Mustafa , محاسب تكاليف , شركة المزار للمقاولات ذ.م.م.

A)Time and materials

 

 

The project manager and the contractor shall have access to the texts of the agreement (contract of work) between the statement of the main issues that involve the work force, including: Duration of the project Cost of materials Contract Value Contracts of both teams  

Muhammad Farooq
من قبل Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.

Answer: A

Explanation: Time and Materials (T&M) contracts are used in labor contracts. In a T&M contract, the seller pays a rate for each of the people working on the team plus their material costs. The "Time" part means that the buyer pays a fixed rate for labor - usually a certain number of dollars per hour. And the "Materials" part means that the buyer also pays for materials, equipment, office space, administrative overhead costs, and anything else that has to be paid for.

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