Table Sequence Of Resources Sacrificed Based On Type Of Contract

Firm- Fixed-Price-

Fixed- Incentive-

Price Fee

Cost-Plus- Cost-Plus- Cost-Plus-Cost Cost Incentive- Award-Fee Fixed-Fee

Contract Sharing Fee (CPIF) (CPAF) (CPFF)

Time 2

Cost 1

Performance 3

1 = first to be sacrificed.

2 = second to be sacrificed.

3 = third to be sacrificed.

The cost-plus-incentive-fee (CPIF) contract. The costs are reimbursed and measured for determination of the incentive fee. Thus cost is the last constraint to be considered for trade-off. As with the FPIF contract, performance is usually more important than schedule for project completion, and so the sequence is the same as for the FPIF contract.

The cost-plus-award-fee (CPAF) contract. The costs are reimbursed to the contractor, but the award fee is based on performance by the contractor. Thus cost would be the first constraint to be considered for trade-off, and performance would be the last constraint to be considered.

The cost-plus-fixed-fee (CPFF) contract. Costs are reimbursed to the contractor. Thus, cost would be the first constraint to be considered for trade-off. Although there are no incentives for efficiency in time or performance, there may be penalties for bad performance. Thus time is the second constraint to be considered for trade-off, and performance is the third.

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Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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