PJM400 MOD7 Discussion PostRequiredChapter 7 and Chapter 19

PJM400 MOD7 Discussion PostRequiredChapter 7 and Chapter 19 pp. 532-577 in Procurement, Principles & ManagementPart 1, Chapter 12, Sections 12.3.1.1 through 12.3.2.5 in A Guide to the Project Management Body of KnowledgeRecommendedKelly, C., & Yang, J. (2015). Improving the bottom line.Internal Auditor, 72(1), 54.ReferencesBaily, P., Farmer, D., Crocker, B., Jessop, D., & Jones, D. (2015). Procurement, principles & management (11th ed.). United Kingdom: Pearson (Intl) Inc.Larson, E. W., & Gray, C. F. (2017). Project management: The managerial process (7th ed.). New York, NY: McGraw-Hill.Project Management Institute. (2017). A Guide to the project management body of knowledge (PMBOK® Guide) (6th ed.). Newton Square, PA: PMI Publications.From among the required or recommended readings and at least one credible, peer-reviewed outside source, answer the following.Why do contracts include incentives?When is it best touse an incentive (identify a minimum of two specific circumstancesunder which the use of incentive elements in the contracts arebeneficial or necessary)?How are contracts used to transfer risk (identify two specific circumstances and provide an example for each)?