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متابعة

Generally speaking an advantage of a fixed price contract is?

 

A. the cost risk is higher.

B. the cost risk is lower.

C. there is a medium amount of risk.

D. the risk is shared by all parties.

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تم إضافة السؤال من قبل Muhammad Farooq , QA-QC Manager , AL Bawani Contracting Co
تاريخ النشر: 2016/10/01
Imran Ahmed
من قبل Imran Ahmed , Manager-Planning & Delay Analyst , Nesma United Industries (NUI) Saudi Arabia

Option-B The cost risk is lower

This contract is having advantage as a contract with less cost risk involved in the project.

Krishna   KHASANIS  PMP
من قبل Krishna KHASANIS PMP , Project Manager-Electrical , Larsen & Toubro Ltd, P T & D (International)

Thanks for the invite.

It is B - the cost risk is lower.

In FP type buyer has less cost risk.

مستخدم محذوف‎
من قبل مستخدم محذوف‎

The advantage is for the buyer, because the price is fixed and there is no risk for buyer. The risk of cost over runs shifts entirely to the seller, hence the cost risk is high for the seller.

Correct answer is (B) cost risk is lower, advantage for the buyer

Ashrat Khan
من قبل Ashrat Khan , Group Q.A.Manager and Product Developement , Americana Group Company ( Greenland)

This is very tricky. If we all saying  Option B.. which is  considering cost risk is lower.

 

This can be D - as well  in some cases.  Some cost may happen from the dispatch to the arrive point.

Cost of raw materials may vary from season to season

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