Register now or log in to join your professional community.
A. firm fixed price
B. None of the other alternatives apply
C. fixed price plus incentive fee
D. letter contract
E. cost plus percentage of cost
a letter contract becomes a contract and has all its characteristics however not all the terms and conditions.
which one is easier to change the scope? none . a change is a change and it will affect the cost of the project (increase/decrease), the Employer/consultant have to make a financial study before taking a final decision whether it will be instructed or not. a simple cost plus contract will affect the overall project cost as any other contract stated in the question. it would be better from the beginning if the employer/consultant knew about a the potential possibility of a major change in the futur to chose a Cost Plus with a bonus of performance (sharing the reduction in cost ) that would encourage the contractor to reduce costs.
generally any cost plus can be used only when the Employer doesn't know what he wants, how much it will cost and what are the risks. that is why it is not recommended because it is the Contractor's Big Love and the Employer will bear all risks. And the management and control are complicated and will have their additional cost.
Out of the given , option E - Cost plus percentage of costs is more appropriate.
E. cost plus percentage of cost
In my opinion
E. cost plus percentage of cost
Thank you for the invitation. I am not sure about the answer still my answer is option A
Thank you. I seem B. None of the other alternatives apply is good answer.
---------- Option D. letter contract