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Which of the following contracts has the MOST risk for the buyer?

A. FP

B. CPAF

C. CPIF

D. T&M

 

 

 

Procurement ERP Project Management Business Administration Contracts
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Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2016/09/03
Upvote (0) Views (7) Followers (5) Answers (5) Report Question
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mamoun mokhtar
by mamoun mokhtar , general manager , albyan technical foungary

thanks for the invitations , the options are not provided

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

In my opinion

The Time & Materials (T&M) contract is the riskiest one for the buyer, because if the project costs are much higher than the original estimates, the buyer has to swallow them, while the seller keeps getting paid for the time worked.

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

Thanks for the invitation.

CPAF - Cost Plus Award Fee type of contract pose most ( cost ) risk to the buyer out of the given options.

Faisal Ali Syed
by Faisal Ali Syed , Payments & Reconciliation Officer , United Bank Limited

Option B and C has most risk associated as the buyers has to pay the contractors in either case.

Ghulam Farid
by Ghulam Farid , Contracts Officer , Abu Dhabi Company for Onshore Petroleum Operations (ADCO)

Option B then C , CP Contracts are always more risky for buyers as they dont know in da beginning how much amount to b paid against da project

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