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Which type of contract requires that the buyer keeps the tightest labor/material cost control?

 

A. Cost Plus Percentage of Costs

B. Firm Fixed Price Plus Incentive

C. Cost Plus Fixed Fee

D. Firm Fixed Price

E. Cost Plus Incentive Fee

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Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2016/07/16
Mohamed Helal
by Mohamed Helal , Project Manager , GROUP CONSULT INTERNATIONAL

 

A. Cost Plus Percentage of Costs

Abdul Rehman
by Abdul Rehman , Electrical Engineer , Tamdeed Projects

My answer to this question is option A

Sattar Abdulkarim  Mohamed
by Sattar Abdulkarim Mohamed , Country Sales Director , Ideal Technical Solutions

Thanks for your invitation. It is the cost plus the percentage of costs.

Muhammad Farooq
by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.

The most suitable option is

A. Cost Plus Percentage of Costs

Ahilan R
by Ahilan R , Scientific Assistant-D , Nuclear Power Corporation of India Ltd (NPCIL)

Answe is  A. Cost Plus Percentage of Costs...................

Abu Bakar Siddique
by Abu Bakar Siddique , Procurement / Purchase Executive , Younone sports shoes Ind. LTD.

B. Firm Fixed Price Plus Incentive

Ksenija Kancelak
by Ksenija Kancelak , Construction Project Manager , City of Koprivnica, Koprivnica (Croatia)

My opinion is that the answer is C

Terrence Walmsley
by Terrence Walmsley , Owner , The Awesome Group of Companies

A service level agreement (SLA) will provide an understanding between the supplier and customer on the agreed outputs and costs. This in essence provides the 'benchmark' levels for the labour and material costs. The aim from this point for the service provide, is to maximise efficiencies for the supplier business by continually measuring and analysing the systems again the benchmarks and subjecting them to CI analysis.

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