You are the program manager for your project. You are working with the project managers regarding the procurement processes for their projects. You have ruled out one particular contract type because it is considered too risky for the program. Which one of the following contract types is usually considered to be the most dangerous for the buyer?

Question

Quizplus · Accepted Answer

Cost plus percentage of costs contracts are considered most risky for the buyer because the seller is reimbursed for all costs plus a percentage of those costs, which can lead to increased costs without incentive for efficiency.

You Are the Program Manager for Your Project