What is the difference between a turnkey contract and a cost-plus contract? Include in your discussion the advantages and disadvantages of each
What will be an ideal response?
A turnkey or lump-sum contract is one where the project organization assumes all responsibility for successful performance. Turnkey contracts work well when the contract is well-understood by all parties so initial cost estimates are reasonable. If project elements are missed or difficulties arise, the contractor is left holding the bag for all unforeseen costs. A cost-plus arrangement is one where the contractor's fee is fixed in advance and the requesting party pays for all costs plus the fee. The risk is shifted to the requesting party with this arrangement since there is little incentive for the contractor to hold the line on costs.
You might also like to view...
Net income or loss reported in a multiple-step income statement format is always the same as net income or loss reported in a single-step income statement format.
Answer the following statement true (T) or false (F)
During the 1960s, ________ published Theory X and Theory Y.
A. Elton Mayo B. Frederick Taylor C. Eric Berne D. Douglas McGregor
Usually the first step in selecting an ERP system is researching the ERP vendors on the market
Indicate whether the statement is true or false
Briefly discuss McAfee's SLATES Model in Enterprise 2.0 (ESN).
What will be an ideal response?