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PK0-005 · Question #238

A project manager is reviewing a signed legal document pertaining to the hiring of a vendor who will develop an experimental solution. The vendor could not provide accurate estimates at this time…

The correct answer is A. Time and materials contract. A time and materials contract is a type of contract where the buyer pays the seller for the actual time and materials used during the project. This type of contract is suitable when the scope of work is uncertain or likely to change, and the vendor cannot provide accurate…

Project Management Concepts

Question

A project manager is reviewing a signed legal document pertaining to the hiring of a vendor who will develop an experimental solution. The vendor could not provide accurate estimates at this time because the requirements will probably be changing. The document also contains information about the resources involved and the rates the vendor will charge for the work. Which of the following best describes the legal document the project manager is reviewing?

Options

  • ATime and materials contract
  • BMaster service agreement
  • CFixed-price contract
  • DNon-disclosure agreement

How the community answered

(21 responses)
  • A
    90% (19)
  • C
    5% (1)
  • D
    5% (1)

Explanation

A time and materials contract is a type of contract where the buyer pays the seller for the actual time and materials used during the project. This type of contract is suitable when the scope of work is uncertain or likely to change, and the vendor cannot provide accurate estimates. The document also specifies the resources involved and the rates the vendor will charge for the work.

Topics

#Contract types#Time and Materials contract#Vendor management#Procurement

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