PGMP · Question #369
A project you have been managing is falling behind schedule. You have received approval to crash the project by adding an additional programmer. The cost you have negotiated is $60 US per hour. The…
The correct answer is C. Time and materials. Time and Materials (T&M) contracts pay the vendor based on the actual time spent (e.g., an hourly rate) plus the cost of any materials used. The key indicators here are: (1) the programmer is paid a set hourly rate ($60/hour), and (2) the contract duration is open-ended - it…
Question
A project you have been managing is falling behind schedule. You have received approval to crash the project by adding an additional programmer. The cost you have negotiated is $60 US per hour. The programmer will work on the project until it is complete, then the contract will end. What type of contract is this?
Options
- ACost-plus
- BPurchase order
- CTime and materials
- DFixed-price
How the community answered
(33 responses)- A3% (1)
- B6% (2)
- C79% (26)
- D12% (4)
Explanation
Time and Materials (T&M) contracts pay the vendor based on the actual time spent (e.g., an hourly rate) plus the cost of any materials used. The key indicators here are: (1) the programmer is paid a set hourly rate ($60/hour), and (2) the contract duration is open-ended - it continues until the work is complete. This means the total cost is variable and depends on how many hours are actually worked. Fixed-Price would require a single agreed total price. Cost-Plus would reimburse all costs plus a fee. A Purchase Order is a unilateral document typically used for defined goods, not ongoing labor.
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