Certified Associate in Project Management (CAPM) — Question 283

What are the two most common contract types used in a project?

Answer options

• A. Cost plus award fee (CPAF) contract and fixed price contract
• B. Fixed price contract and cost-reimbursable contract
• C. Cost-reimbursable contract and time and material (T&M) contract
• D. Time and material (T&M) contract and cost plus award fee (CPAF) contract

Correct answer: B

Explanation

The correct answer is B because fixed price contracts and cost-reimbursable contracts are indeed the two most prevalent types of contracts used in project management. Options A, C, and D include contract types that are less commonly used or pair a more common type with a less common one, making them incorrect in this context.