QuestionQ405

Project Management Concepts

Which contract type would be most advantageous to both parties when the project scope contains a large number of unknowns?

  • A Variable costs
  • B Fixed costs
  • C Front-loaded
  • D Time and materials
Explanation

A time-and-materials contract compensates the seller for the actual time and materials required while allowing the buyer to proceed despite an uncertain scope. It avoids assigning excessive fixed-price risk to either party before the work can be accurately defined.

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