Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

AACE International Exam CCP Topic 5 Question 10 Discussion

Actual exam question for AACE International's CCP exam
Question #: 10
Topic #: 5
[All CCP Questions]

Which of the following is a disadvantage to using target contract as a method of contracting?

Show Suggested Answer Hide Answer
Suggested Answer: B

A target contract is a form of contract where both the owner and contractor agree on a target cost, and both parties share any cost savings or overruns. This contract type encourages efficiency but has some drawbacks.

Key Points:

Disadvantages of Target Contracts:

No Competitive Bidding for Targets: The target cost is typically negotiated rather than competitively bid, which could lead to less competitive pricing.

Other Points: While target contracts encourage timely and economical completion and allow for early start and flexibility, the lack of competitive bidding for the targets can be a significant disadvantage.

Conclusion: The correct answer is B. No opportunity to competitively bid the targets because this is a specific disadvantage associated with target contracts.


by Benton at Sep 17, 2024, 05:46 PM

Limited Time Offer

25%

Off

Get Premium CCP Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Matthew
10 months ago
Option B all the way! Competitive bidding is the way to go, unless you want to end up with the contractor's cousin getting the job.
upvoted 0 times
Chantell
9 months ago
True, but it's important to weigh the pros and cons before making a decision.
upvoted 0 times
...
Sol
9 months ago
But target contracts can also provide flexibility in controlling the work.
upvoted 0 times
...
Shenika
9 months ago
I agree, competitive bidding ensures fairness and transparency.
upvoted 0 times
...
...
Felix
10 months ago
A might sound good, but I'd rather take my time and do it right than rush through it. Slow and steady wins the race, am I right?
upvoted 0 times
Lenora
9 months ago
D) Flexibility in controlling the work
upvoted 0 times
...
Chery
9 months ago
I agree, taking your time can lead to better results in the long run.
upvoted 0 times
...
Berry
9 months ago
B) No opportunity to competitively bid the targets
upvoted 0 times
...
Lanie
10 months ago
A) Encourages economic and speedy completion
upvoted 0 times
...
...
Launa
10 months ago
But on the other hand, target contracts encourage economic and speedy completion, which can be beneficial.
upvoted 0 times
...
Willodean
11 months ago
I agree with Fausto, not being able to competitively bid can lead to higher costs.
upvoted 0 times
...
Jerilyn
11 months ago
D sounds great, but I bet the 'flexibility' comes with a hefty price tag. No thanks!
upvoted 0 times
...
Kayleigh
11 months ago
C is pretty tempting, but starting work without a clear scope? Yikes, recipe for disaster if you ask me.
upvoted 0 times
...
Fausto
11 months ago
I think the disadvantage is B) No opportunity to competitively bid the targets.
upvoted 0 times
...
Mollie
11 months ago
I think option B is the correct answer. How can you have a fair competition without bidding?
upvoted 0 times
Andra
10 months ago
Without competitive bidding, it can lead to potential issues with fairness and transparency in the contracting process.
upvoted 0 times
...
Laticia
10 months ago
I agree, option B is a disadvantage because there is no opportunity to competitively bid the targets.
upvoted 0 times
...
...

Save Cancel