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Tom is a project manager for a software company. He is contracting a long-term software project with an external company?

 

That company charges him $/hour per employee and $ overhead per month. What kind of contract is he using?

A. FP 

B. CPAF

C. CR

D. T&M

 

 

 

 

 

 

 

 

Procurement Contract Review Project Management Business Administration Contracting
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Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2016/09/02
Upvote (0) Views (8) Followers (4) Answers (4) Report Question
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Faisal Ali Syed
by Faisal Ali Syed , Payments & Reconciliation Officer , United Bank Limited

Tom is doing time and material T & M contract in which a contractor is paid on the basis of labor, hourly rates, materials and equipment usage.

Imran Ahmed
by Imran Ahmed , Manager-Planning & Delay Analyst , Nesma United Industries (NUI) Saudi Arabia

Option-D T&M (Time & Material Contract)

Muhammad Usman Mughal
by Muhammad Usman Mughal , Key Account Supervisor , Gerry International

Being a project manager with multirole of TQM ( total quality management), Contract with labour outsourse is benificial while providing software for recording of labour ID , per hour rates,  recording of site store material and fixed materials usage with assurace of maintainance in case disturbance and payment terms on time.

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

This is not uncommon. IT software companies will specialise in specific elements in writing program. If there is an area where they are not so good, they will outsource. This will save time and labour costs.

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