Certified Associate in Project Management (CAPM) — Question 381

A protect manager needs to request outside support for a statement of work (SOW) that is not precise. Which kind of contract does the project manager need to create?

Answer options

• A. Time and material (T&M)
• B. Cost plus fixed fee (CPFF)
• C. Fixed price
• D. Cost plus award fee (CPAF)

Correct answer: A

Explanation

The correct answer is A, Time and material (T&M), as it allows for flexibility in pricing based on the actual work performed and materials used, making it suitable for vague SOWs. The other options, such as Fixed price and CPFF, are less adaptable to changes and uncertainties in project scope, while CPAF involves performance incentives, which may not be appropriate for imprecise SOWs.