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In a fixed priced contract the profit of the seller is?

 

A.  Discussed and agreed during negotiations and are part of the contract

B.  Unknown

C.  known 

D.  Discussed and agreed at the end of the project     

 

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Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2016/07/02

Most of the times it is unknown, so answer is

B.  Unknown

However in some cases it is negotiated and agreed too.

Krishna   KHASANIS  PMP
by Krishna KHASANIS PMP , Project Manager-Electrical , Larsen & Toubro Ltd, P T & D (International)

Answer : B

Profit of the seller is Uknown to buyer.

Usman Islam
by Usman Islam , Yard Manager , Kirtanlal Scaffolding & Formwork

Option B is the correct answer

Mohamed Helal
by Mohamed Helal , Project Manager , GROUP CONSULT INTERNATIONAL

B.  Unknown........................

sardar mardookhy
by sardar mardookhy , PMP certified Project manager , MCCI

It is known because the seller knows how much mony will get and they can calculate the costs and deduct it.

VINAY KUMAR GOSWAMI
by VINAY KUMAR GOSWAMI , Partner , 2MI

Theoretically it is Option - B "Unknown". It is called "Black Box" approach. However in reality sourcing person has rough order of estimate for the vendor's cost of service/ product. Generally decision of procuring verdor service is based on analysis of Inhouse Costs Vs Outsourcing.

mamoun mokhtar
by mamoun mokhtar , general manager , albyan technical foungary

it is the satisfaction of the byer

Eng Ahmed Elsharkawy
by Eng Ahmed Elsharkawy , Civil Engineering Project Manager , Altwijry office

thanks for invition ,,,,,,,,,, my choice is option B

Ahilan R
by Ahilan R , Scientific Assistant-D , Nuclear Power Corporation of India Ltd (NPCIL)

In a fixed priced contract the profit of the seller is? 

B. Unknown

Ksenija Kancelak
by Ksenija Kancelak , Construction Project Manager , City of Koprivnica, Koprivnica (Croatia)

The answer is"unknown" since it is a fixed price contract and the seller has put the profit inside the fixed price and buyer usually does not have any idea what is the cost and profit expected by the seller.So, my answer is : B

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