Which of the following contracts has the most risk for the buyer?

Options
- Cost plus fixed fee (CPFF)
- Time and Materials (T&M)
- Cost plus percentage of costs (CPPC)
- Fixed price (FP)

CORRECT ANSWER : Cost plus percentage of costs (CPPC)

Discussion Board
Explanation-

Cost plus fixed fee contract has the highest risk for the buyer, because this provides a payment to the seller of seller of actual costs plus a fixed fee which is determined in the contract. So, the seller doesn't have any incentive or award even if he meets certain deadlines or not.

Sapna Ambadkar 03-17-2017 05:48 AM

Write your comments


Enter the code shown above:

(Note: If you cannot read the numbers in the above image, reload the page to generate a new one.)


Related Content

Advertisement
 
▲