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As a result of a global pandemic, a local hospital is facing significant patient capacity pressures and would like the construction of a new 50-bed ward to be prioritised and fully operational at the earliest opportunity. Which of the following pricing arrangements would support this aspiration?
Suggested Answer: A
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Incentivised pricing is designed to motivate suppliers to meet or exceed performance targets by providing financial or other incentives. In urgent projects, such as constructing a hospital ward during a pandemic, incentivised pricing encourages suppliers to accelerate delivery without compromising on quality. This supports the buyer's need for speed and reliability.
12 comments · newest first
CA
Cammy
2 months ago
Time and materials arrangement could lead to delays. Not ideal for urgent needs.
TH
Thad
3 months ago
I disagree. Fixed price economic adjustment pricing ensures budget control.
VE
Verdell
3 months ago
I think incentivised contract pricing is the best option. It motivates quick completion.
MA
Mari
3 months ago
Penetration pricing is usually for products, not construction projects.
JA
Jamal
3 months ago
Not sure if time and materials would actually get it done fast enough.
SH
Sherly
3 months ago
Really? I thought incentivised contracts were better for speed.
NO
Nobuko
4 months ago
Totally agree, fixed price seems the safest bet here!
RO
Robt
4 months ago
A fixed price economic adjustment could help manage costs effectively.
EL
Elza
4 months ago
Penetration contract pricing sounds familiar, but I can't recall how it would apply to a hospital project like this.
DO
Dorcas
4 months ago
I practiced a similar question, and I feel like time and materials arrangement pricing might lead to delays since it doesn't prioritize speed.
ED
Eden
4 months ago
I'm not entirely sure, but I remember something about fixed price economic adjustment pricing being useful for managing costs in uncertain situations.
VI
Viola
4 months ago
I think incentivised contract pricing could be beneficial since it encourages the contractor to finish the project quickly.