You’re managing a project that is difficult to estimate, so you don’t have a good idea of when the project will end. Which of the following?

Option-D (Time & Materials Contract)

FP Fixed price contract is good for Buyer but having maximum risks for seller. That is why it is not suitable for seller to accept.

T & M is a contract in which a contractor is paid on the basis of (1) actual cost of direct labor, usually at specified hourly rates, (2) actual cost of materials and equipment usage, and (3) agreed upon fixed add-on to cover the contractor's overheads and profit.

 

 

 

 

Thanks for invitation -

With the choice - D . 

Thanks for the invitation.

Option D - T&M appears to be most appropriate in the absence of details of project.

 

I agree with Option D T&M ((Time & Materials Contract).

Option D is equally sharing uncertainty for both parties. So option d is ok

Option D is the best for an unanticipated project as it will at least give the control and monitoring over the time and money involved.

The answer is choice (D) T&M

1-Analogous Estimating. This is the method of recording the hours spent on tasks and noting down the expenses of projects so when there is a similar project in the future, the records can serve as references for estimating.

2-Parametric Estimating. Without any previous records and reports of the actual number of hours spent and expenses on a similar project, the other way to do it is to find public information that is relevant to the project.

3-Bottom-Up Estimating. Meet up with people who have experiences doing the tasks and let them give the estimates for this project. They will be accountable to the estimate or budget that they have created.