Which of the following contract types places the LEAST amount of risk on the seller?

Fixed-Price contracts place the highest risk on the seller, as they must deliver the project for a predetermined price, absorbing any cost overruns.

Cost-Plus-Fixed-Fee (CPFF) contracts reimburse the seller for all allowable costs plus a fixed fee, which is less risk than fixed-price but still exposes the seller to some risk if project scope changes significantly without adjustment.

Cost-Plus-Fee (CPF) contracts are similar to CPFF, reimbursing for costs and adding a fee, but may include incentives or other fee structures that still place more risk on the seller than a pure T&M model where all time and materials are covered.

In a Time and Material (T&M) contract, the seller charges the buyer for the actual time spent by personnel and the actual cost of materials used, plus an agreed-upon profit margin. This structure ensures the seller is reimbursed for all legitimate costs, thereby minimizing their financial risk related to cost overruns or unexpected efforts.