CISSP-ISSMP: Information Systems Security Management Professional

By ISC · Question Mode

QuestionQ171

VerifiedRisk Management

You are the program manager for your project and are working with the project managers on the procurement processes for their projects. You have excluded one particular contract type because it is viewed as too risky for the program. Which of the following contract types is generally considered the most dangerous for the buyer?

Explanation

A cost-plus-percentage-of-costs contract is most risky for the buyer because the seller’s compensation rises as project costs rise, creating weak incentive to control costs and leaving the buyer exposed to potentially escalating expenditures.

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