Question

1- Many different types of contracts exist, but a hight level they fall into one of three categories:

-Fixed price contracts

-Cost reimbursable contracts

-Time and material contracts

The conceptual difference between each contract type is based primarily on: -To what degree does the buyer or seller assume the risk of cost overruns? -How much flexibility exist within the execution of the contract to make changes to the scope or implementation approach?

Which of the following is False:

A) With a fixed price contract: the buyer has the least risk of fluctuation in cost, the buyer has the least flexibility to change the scope of the contract, the buyer has the least control in how the contract is executed.

B) With a time and materials contract: The buyer has the greatest control over the execution of the contract, the buyer has the ability to change the scope of the contracts, the seller has the least risk for fluctuations in contracts cost.

C)With a cost reimbursable contract: The seller has the greatest control over the scope of the contract, the seller has the greatest control over the execution of the project, the buyer has the least risk of fluctuations in cost.

2- Statement if work (SOW) is a description of products services or results to be delivered by the project.

How does a statement of work differ form a project charter?

A) A project charter is used to initiate a project. It is used primarily within an organization. A statement of work is often used as part of the procurement process and used to bring goods and services onto the project from outside the organization.

B) A project charter and a statement of work are s=essentially the same document, just different mane for it.

C) A statement of work can be used as a replacement for a project charter and a project plan.

Answer 1

1.

Correct answer is option C)

Option C)With a cost reimbursable contract: The seller has the greatest control over the scope of the contract, the seller has the greatest control over the execution of the project, the buyer has the least risk of fluctuations in cost is false

cost reimbursable contract involves buyer paying the direct cost incurred by the seller and additional agreed upon fee. cost reimbursable contract carries risk for both buyers and sellers

2.

Correct answer is option A) A project charter is used to initiate a project. It is used primarily within an organization. A statement of work is often used as part of the procurement process and used to bring goods and services onto the project from outside the organization.

A project charter is created based on the statement of work and is used to to kick start the project