CFM Exam Dumps | You are tasked with building four conference rooms with standard conference features. The project scope

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Question 11/86

You are tasked with building four conference rooms with standard conference features. The project scope and schedule are clearly defined. To minimize risk to the organization, what type of contract should be used to procure the needed services?

A. Cost-Plus-Fee Contract

B. Cost-Reimbursable Contract

C. Fixed-Price Contract

D. Time and Material Contract

Correct Answer: C

AFixed-Price Contractis the best option for a project witha well-defined scope and schedulebecause:
* Itminimizes financial riskby setting a predetermined cost.
* The contractorbears the risk of cost overruns, ensuring budget predictability.
* Why the other options are incorrect:
* (A) Cost-Plus-Fee contractsallow for cost adjustments,increasing financial risk.
* (B) Cost-Reimbursable contractscan lead tohigher costs with no guarantee of a fixed budget.
* (D) Time and Material contractsare used foruncertain scopesand do not provide cost stability.

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