PMP (Project Management Professional) · Question
Which type of contract places the most risk on the buyer?
Cost-Reimbursable Contracts place the most risk on the buyer because they pay for all allowable costs incurred by the seller, regardless of outcome.
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Question: Which type of contract places the most risk on the buyer?
Answer options:
- Fixed-Price Contract (FPC) ✅ Cost-Reimbursable Contract (CRC)
- Time and Material (T&M) Contract
- Fixed-Price with Economic Price Adjustment (FP-EPA)
Correct answer: Cost-Reimbursable Contract (CRC)
Explanation: Cost-Reimbursable Contracts place the most risk on the buyer because they pay for all allowable costs incurred by the seller, regardless of outcome.
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Question explanations
- What is the primary output of the 'Direct and Manage Project Work' process?
- Which project management approach emphasizes frequent communication, self-organizing teams, and adapting to ch
- Which of the following is an output of the 'Develop Project Charter' process?
- Which type of risk response strategy involves shifting the impact of a threat along with ownership to a third
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