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In which of the following types of contracts is it most important for the contractor to maintain control of cost, schedule and scope changes?

 

A. cost plus incentive fee

B. Cost plus incentive fee and firm fixed price

C. firm fixed price

D. cost plus fixed fee

E. unit price

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Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2016/07/03
Usman Islam
by Usman Islam , Logistics And Warehouse Manager , Kirtanlal Scaffolding & Formwork

option C is most suitable choice 

mamoun mokhtar
by mamoun mokhtar , general manager , albyan technical foungary

yes in the fixed price contract , the contractor must take seriously the control of cost ,shedule and scope changes

VINAY KUMAR GOSWAMI
by VINAY KUMAR GOSWAMI , Partner , 2MI

Option C (Fixed Bid) - Schedule delays or budget expansion will cause cost escalation, which in turn will eat up the profit margins.

Mohamed Helal
by Mohamed Helal , Project Manager , GROUP CONSULT INTERNATIONAL

Thanks for invitation....I endorse answers given by colleagues &Experts

Md Fazlur Rahman
by Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

C. firm fixed price

In firm fixed price contact, all risk is borne by the contractor. So, the contractor has to control cost, schedule and scope changes in order to make predetermined profit.

Deleted user
by Deleted user

Agree with MR  Md. Fazlur Rahman & Mr  Usman Islam 

Answer is 

C. firm fixed price

 

sardar mardookhy
by sardar mardookhy , Head of portfolio management department , MCI

C. firm fixed price  Is the answer

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

Obiviously answer has to be C . 

In firm fixed price contract , contractor is supposed to execute the contract successfully in an agreed fixed amount. So contractor has to take care of all the constraints.

Samer Almohtar
by Samer Almohtar , Physics teacher- civil engineer trainee , Global International school-Khatib and Alami company

In the contract of unit price because in this case because the money that you get depends on the amount of work performed so you have to control your cost in order to make profit while in the other contracts no matter how much the cost is you will be paid the cost plus fees as profit moreover the fees are usually as percentage of the cost so the higher the cost the higher the profit. 

Nader Roshani
by Nader Roshani , Revenue Manager , Rightel

Firm Fixed price, in this contract you need more cost controlling and scheduling.