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A project manager for a large manufacturing concern is working on a project that calls for new building to be constructed to house a new clean system manufacturing process that is critical to the success of the project. Construction is not a core competency of his company. His company has the ability to create a detailed procurement statement of work , with penalties if specific statement of work is not met. He is in the Plan Procurement process, evaluating which contract would work the best, which of the following is the BEST type of contract for this situation?
a) Fixed price
b) Cost plus fixed fee
c) Cost plus incentive fee
d) Time and materialThe correct answer is A.
This is not a core competency of the company. There is time and data for a detailed procurement statement of work. In this case, it is better to shift risk to another company.
Pass PMP in the First Attempt : PMP Strategy
Revise Procurement Management Concepts: Project Procurement Management
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