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ISC2 Exam ISSMP Topic 5 Question 26 Discussion
Topic #: 5
You are the program manager for your project. You are working with the project managers regarding the procurement processes for their projects. You have ruled out one particular contract type because it is considered too risky for the program. Which one of the following contract types is usually considered to be the most dangerous for the buyer?
Answer option B is incorrect. A fixed fee contract is generally very safe for the buyer.
Answer option A is incorrect. A cost plus incentive fee can be somewhat risky for the buyer, but not as risky as the cost plus percentage of costs. The incentive fee can be a bonus for reaching a particular deadline, keep waste low, or other factors that you'd like to reward.
Answer option D is incorrect. Time and materials contracts are generally low risk contracts if the contracts have a not-to-exceed clause.
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