PMP Certification Prep Flashcards

SELLER BEARS ALL RISK

FIRM FIXED PRICE (MOST COMMON, SELLER COVERS ANY COST INCREASE,)

FIXED PRICE PLUS INCENTIVE FEE (INCLUDES ANY EXTRA PERFORMANCE BONUS)

FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (USED ON LONG TERM PROJECTS, BUYER COVERS INFLATION COST); COST-PLUS (BUYER ASSUMES SOME RISK)

COST PLUS PERCENTAGE OF COST (SELLER REIMBURSED FOR COST, PLUS A % COMMISSION)

COST PLUS FIXED FEE (SELLER REIMBURSED FOR COST, PLUS A FIXED $ COMMISSION)

COST PLUS INCENTIVE FEE (SELLER REIMBURSED FOR COST, PLUS AN EXTRA PERFORMANCE BONUS)

COST PLUS AWARD FEE (SELLER REIMBURSED FOR COST, PLUA AN EXTRA PERFORMANCE BONUS)

TIME AND MATERIALS (HYBRID, MODERATE RISK TO BUYER, OFTEN USED FOR STAFF AUGMENTATION AND CONSULTANTS)