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DEVRY PROJ 410 Week 2 DQ 1 .pdf

Original filename: DEVRY PROJ 410 Week 2 DQ 1.pdf
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DEVRY PROJ 410 Week 2 DQ 1

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Assume that you have made the final payment on a one-acre residential lot that you
purchased years ago to build your retirement home. You are now ready to build your
dream home. This will be your ongoing project for the next couple of years. Which
contract structure (fixed price, unit price, reimbursable) do you think that you
would use to proceed with your project? Explain your choice.
What are the four basic contract pricing options?
What are five options of cost reimbursable contracts?
In what situation a company is best to use a unit price contract? In what situation, a
company is best to use cost-plus-percentage-fee contract?
What are the differences among a fixed price contract, a time and materials contract,
and a reimbursable contract in terms of how well defined a BPO contract needs to be

relative to price, scope and schedule prior to the commencement of any
Class, do you feel the length of the contract also has some influence on the contract
type you choose? Why or why not?
What are the challenges for an owner in tracking a reimbursable contract?
When does a contract manager prefer a fixed fee contract over a reimbursable
contract (or vice versa)?
How many companies do you think go through outlining their business objectives,
and then use these to guide the selection of a contract structure, rather than letting
financial objectives and risk factors alone determine the decision?
If your company decided to make you a manager for your division, but began
outsourcing all the personnel that work beneath you, which contract type would you
recommend they implement?
What are the key contract issues? Pick one of them and elaborate on it.

DEVRY PROJ 410 Week 2 DQ 1.pdf - page 1/2
DEVRY PROJ 410 Week 2 DQ 1.pdf - page 2/2

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