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Requirements And Risks

Requirements And Risks

There are 2 basic types of contracts: the fixed-price contract and the cost-plus contract. Each has several common variations. It is not unusual for any specific contract to have special terms and agreements, so the basic contract is just the starting point. The project manager is most interested in the terms that define and help to control costs, schedule, and quality.

Among the different types of contracts, which contracts do you think would be easiest for ADC to manage, and why? Which contracts would be the most difficult for ADC to manage, and why?

Examples of the contract types include the following:

  • Firm fixed price
  • Fixed price with targets
  • Fixed price at cost
  • Time and materials
  • Cost sharing
  • Cost plus

Within the Discussion Board area, write 600 words that respond to the following questions with your thoughts, ideas, and comments:

  • Which types of contracts do you think would be easiest for ADC to manage? Why?
  • Which types of contracts would be the most difficult for ADC to manage? Why?
  • What specific challenges do you think ADC would face when selecting the ideal type of contract?
  • What would you do personally to avoid or overcome these challenges?
    • What can you use to support your arguments?

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