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A. Time and material (T&M)
B. Cost plus fixed fee (CPFF)
C. Cost plus incentive fee (CPIF)
D. Firm fixed price (FFP)and Time and material (T&M)
E. Firm fixed price (FFP)
This is a confusable question and need a lot to explain all types.
However to just answer, i go for option
A. Time and material (T&M)
Thanks for invite
Option - B (Owner can not control the costs of service provider. Additionally service provider has not incentive to keep costs in check or reduce the costs as he will get the same fixed fee).
T&M is risky proposition too. However owner has control over the resources, scope and budget. Hence it is less risky when compared with CPFF.
The best choice is
A. Time and material (T&M)
My opinion is that the right answer is:
A. Time and material (T&M)
OPTION-C is correct choice
Cost plus incentive is the most risky as the owner does not have any control on cost(material, labor charge) and the contractors incentive will be more when the cost increases.
Appropriate answer is C .
In case of C , in order to get more incentive which is based on cost, vender or seller can jack-up the cost. Hence Owner is at high cost risk.
Whereas Time & Material is used for small value and short time contracts.
thanks for invition ,,,,,,,,,, my choice is option C
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