ExpertHard1 markMultiple Choice
PMP · Question 15 · Task 11: Plan and manage procurement
A project manager is planning a project with a high degree of uncertainty regarding requirements. The organization requires a fixed budget. Which TWO contracting techniques are BEST suited for this scenario?
A project manager is planning a project with a high degree of uncertainty regarding requirements. The organization requires a fixed budget. Which TWO contracting techniques are BEST suited for this scenario?
Answer options:
A.
Firm Fixed Price (FFP) for the entire scope.
B.
Time and Materials (T&M) with a Not-To-Exceed (NTE) cap.
C.
Cost Plus Fixed Fee (CPFF).
D.
Incremental delivery with stage gates.
E.
Procurement of all resources upfront.
F.
Dynamic Systems Development Method (DSDM).
How to approach this question
Match the constraint (Fixed Budget) + Context (Uncertainty) to the contract type.
Full Answer
T&M allows for agility, while the Cap protects the budget. Incremental funding allows the organization to stop spending if value isn't delivered.
Common mistakes
Choosing Fixed Price (A) which is dangerous when requirements are uncertain.
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