Skip to main content

Supply Chain Management Professional (SCMP) · Question

Which contract type is most suitable when the scope of work is well-defined and risks are low for the contractor?

A firm-fixed-price contract offers the most predictable cost for the buyer and places maximum risk on the contractor when the scope is clear.

Start free practice for Supply Chain Management Professional (SCMP)

200 questions · no signup required · 40 free questions per day

Start Practice →

Question: Which contract type is most suitable when the scope of work is well-defined and risks are low for the contractor?

Answer options:

  • Cost-plus-fixed-fee contract
  • Time and materials contract ✅ Firm-fixed-price contract
  • Incentive contract

Correct answer: Firm-fixed-price contract

Explanation: A firm-fixed-price contract offers the most predictable cost for the buyer and places maximum risk on the contractor when the scope is clear.

Start free practice for Supply Chain Management Professional (SCMP)

200 questions · no signup required · 40 free questions per day

Start Practice →

More about Supply Chain Management Professional (SCMP)

Related Questions

More for Supply Chain Management Professional (SCMP) candidates

Ready to practice?

Free, no signup required. Build a wrong-question list as you go.

Start Free Supply Chain Management Professional (SCMP) Practice →

Related courses

Other Canadian certifications candidates often prepare for alongside this one.