Free PMI Project Management Professional (PMP) Practice Question

Your organization is about to embark on a large infrastructure project which requires significant upfront investments and involves multiple external contractors. As the project manager, you are tasked with recommending an execution strategy. Which of the following strategies would best ensure financial stability and strong contract management throughout the project lifecycle?

  • Implementing a cost-plus contract to guarantee all expenses are covered

  • Using a fixed-price contract with clearly defined milestones and penalties for non-compliance

  • Adopting a time and materials contract to ensure flexibility in project management

  • Using an indefinite delivery, indefinite quantity contract for better adaptability

This question's topic:
PMI Project Management Professional (PMP) / 
Process
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