The fixed price contract is advantageous to the buyer because it:
requires extremely well defined specifications
requires formal procedures for scope changes
contractor assumes financial and technical risk
has a known cost
A Unit Price (UP) contract provides:
a reimbursement of allowable costs plus a fixed fee which is paid proportionately as the contract progresses
a reimbursement of allowable cost of services performed plus an agreed upon percentage of the estimated cost as profit
the supplier with a fixed price for delivered performance plus a predetermined fee for superior performance
a fixed price where the supplier agrees to furnish goods and services at unit rates and the final price is dependent on the quantities needed to carry out the work.
From a contract management perspective, the project manager must consider the:
offer, acceptance, and consideration
What is the last item a project manager must do to finalize project close-out?
Reassign the team
Archive the project records
Complete lessons learned