PJM 630 Unit 3 DB

Unit 3 – DB

Primary Task Response: Write a page that respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear and use examples to reinforce your ideas.

According to the A Guide to the Project Management Body of Knowledge, (PMBOK® Guide)–Seventh Edition, there are three basic types of contracts or agreements, as follows (Project Management Institute, 2021):

Fixed-price

Cost-plus contracts

Time and material

Each has several common variations. It is not unusual for any specific contract to have special terms and agreements, so the basic contract is just the starting point. The project manager is most interested in the terms that define and help control costs, schedule, and quality. The make-or-buy analysis will help you determine the type of contract to use.

Examples of the contract types include the following:

Firm fixed price

Fixed price with targets

• Fixed price at cost

Time and materials

• Cost sharing

Cost plus

• Indefinite delivery indefinite quantity (IDIQ)

Based on this information, address the following:

Discuss the make-or-buy analysis that prompted you to outsource the      activity.

Pick 1 of the contract types above, and briefly describe a      project work example for which the contract type’s use might be the best.      Who do you think bears the most risk, the buyer, or the seller?And Why?