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A. When project scope includes the progressive elaboration of the scope of deliverables.
B. When subcontractors are being used and the customer will reimburse their invoices.
C. When only a limited amount of money can be made available to fund the project.
D. When cost risks for the customer should be limited but not schedulerisks.
Thank you Mr. Farooq for always inviting me :)
My answer is letter A. Because in this case your time will be paid regardless of how long the project will take. The client can change their plans/ projects and in such case a higher invoice.
Thanks for invitation.
Out of the given options, option A appears to be appropriate.
To put it plainly, T&M or Unit Price Contract is used when level of effort can not be ascertained correctly at the time of awarding the contract.
T & M contract is normally used for small value & short period contracts.
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