Procurement Management

When is an Fixed Price with Economic Price Adjustment Contract Used?

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fixed price with economic price adjustments

Fixed Price with Economic Price Adjustment Contract Explained Fixed Price with Economic Price Adjustment Contract is a variation of the basic Fixed Price Contract (FP). In some of my previous articles, I have explained all the other variations of FP Contracts (as enumerated in PMBOK® Guide). In this article, I will talk about Fixed Price … Read more When is an Fixed Price with Economic Price Adjustment Contract Used?

How to Remember Point of Total Assumption Formula?

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Point of Total Assumption

Point of Total Assumption Formula in Fixed Price Incentive Fee Contract How do you remember any formula? Simple! Understand the concept you will not need to remember the formula. I heard about Point of Total Assumption when I was preparing for PMP® Exam. At the beginning, it sounded very funny. One of the meanings of … Read more How to Remember Point of Total Assumption Formula?

6 Main Formulas of a FPIF Contract

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fpif-contract

Incentive Calculation in a FPIF Contract In my previous post, I described Fixed Price Incentive Fee Contract (FPIF). In this article, I will discuss the formulas and incentive calculations for an FPIF Contract. Let me summarize the basic nature of the contract before getting into formulas and calculations. The basic nature of a FPIF Contract … Read more 6 Main Formulas of a FPIF Contract

What is a Fixed Price Incentive Fee Contract?

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fixed price incentive fee

Fixed Price Incentive Fee Contract Explained PMBOK® Guide defines 3 different types of Fixed Price (FP) Contract. I have written about Firm Fixed Priced Contract (FFP) and Fixed Price with Economic Price Adjustment Contract (FP-EPA) in other posts. In this post, I will talk about Fixed Price Incentive Fee (FPIF) Contract. You should also read the … Read more What is a Fixed Price Incentive Fee Contract?

What is a Firm Fixed Price Contract?

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firm fixed price contract

Firm Fixed Price Contract Explained I have written a number of articles on different types of contracts. In some of my previous articles I have explained Fixed Price (FP) Contract. In this post, let me describe Firm Fixed Price (FFP) Contract. Even though FFP Contract is one of the sub-types of FP Contract but it is … Read more What is a Firm Fixed Price Contract?

PMP Formulas Behind Contract Types

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contracts types

Mathematical Orientation of Contract Types Procurement Management Knowledge Area of PMBOK® Guide defines 3 different Contract Types. I have already written two articles to explain these Contract Types. Contract Types explained through an Example Contract Types for PMP® Exam I have written this article to provide a completely different perspective to the Contract Types. This … Read more PMP Formulas Behind Contract Types

Contract Types for PMP Exam

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contract types

3 Different Contract Types for PMP Exam Have you studied and understood Contract Types for PMP Exam? You can expect a few questions on Contract Types for PMP Exam. The questions on Contract Types for PMP Exam are relatively easy to answer. You should have a complete understanding of the Contract Types. PMBOK® Guide describes … Read more Contract Types for PMP Exam

5 Differences Between Project Charter and Contract

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project charter

Project Charter Definition, Meaning and Purpose A few years ago, I got an assignment to setup PMO for a small software services company. After understanding their business and organization structure, I advised them to start creating Project Charter (PC) for every project. I provided a brief overview of PC to the main stakeholders and gave … Read more 5 Differences Between Project Charter and Contract

Different Types of Contracts In Procurement: Definition & Examples

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Types of Contract

There are three different types of contacts for managing procurement viz. Fixed Price, Time & Material, and Cost Plus. These are also called Fixed Fee or Lump Sum, Unit Price or Rate Contract, and Cost Reimbursable respectively. I have written this article to explain these three contract types. After reading this article you will be … Read more Different Types of Contracts In Procurement: Definition & Examples

Procurement – Some practical aspects

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In my previous post I gave a brief on Procurement and Risk. I deliberated upon who (buyer or the seller) has more/less risk in contract types. The post was written to help PMP aspirants answer some tricky questions reared to Risk and Procurement in the exam. The post can be read by following the below … Read more Procurement – Some practical aspects