PMI Exam CAPM Topic 6 Question 64 Discussion

Actual exam question for PMI's CAPM exam

Question #: 64
Topic #: 6

[All CAPM Questions]

Under which type of contract does the seller receive reimbursement for all allowable costs for performing contract work, as well as a fixed-fee payment calculated as a percentage of the initial estimated project costs?

ACost Plus Fixed Fee Contract (CPFF)

BCost Plus Incentive Fee Contract (CPIF)

CFirm Fixed Price Contract (FFP)

DFixed Price with Economic Price Adjustment Contract (FP-EPA)

Show Suggested Answer

Suggested Answer: D

by Reita at Dec 24, 2023, 04:46 AM

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Dyan

12 days ago

You know, if this was a construction project, I'd be tempted to go with the FP-EPA contract. That way, I could account for any unexpected inflation or material cost increases. But for a standard service contract, the CPFF is the way to go.

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Elke

22 days ago

Hmm, I was thinking the CPIF contract, but now that I re-read the question, the CPFF makes more sense. Though I do sometimes wish I could negotiate a higher percentage of the estimated costs as my fee!

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Maynard

30 days ago

I agree, the CPFF contract is the correct answer. It provides the seller with the financial security and predictability they need to take on a project like this.

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Vicente

1 months ago

The CPFF contract seems like the obvious choice here, with the seller getting reimbursed for all allowable costs and a fixed-fee payment. This is the most straightforward option.

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