PROJ 410 Week 2 DQ 2

What are the differences among a fixed-price contract, a time-and-materials contract, and a reimbursable contract in terms of how well defined a contract needs to be relative to price, scope, and schedule prior to the commencement of any work? How much control over the project scope, price, and schedule should the contractor have under each contract type?

How difficult is it to handle out-of-scope work with the 3 contract types (fixed price, time and materials, reimbursable) after an agreement has been executed?

What do you see as the more common mistakes made by customers/clients or their procurement representatives as it relates to project planning and contract formulation?

Now that you know the differences among a fixed price contract, a time and materials contract, and a reimbursable contract, let’s discuss some of the finer points to consider. Do you think a fixed price contract requires less management attention than a reimbursable contract? Why or why not?

We typically hear of clients looking for the lowest price, and rarely does the term value come into the picture? Is it assumed that the value is there and is that a fair assumption most of the time?

How do you differentiate a project plan from the project definition?

To continue with the relevance of the project definition and project plan (schedule) to contracts: what components of the project definition and schedule have a role in the contract aspects?

How many companies today do you feel take on projects (or business operations) without first developing a comprehensive and detailed project plan? Do you think this will change as the new generation of middle managers (many of which have MBA’s or other post-graduate management degrees) are promoted into project management positions? What are some industries that you feel could continue to operate without much project/business planning and what are some industries that will become increasingly more dependent on this aspect of business management in order to be successful?