Which of the following should the project manager put in place before work begins?

A third party needs to perform a short-term task for which the duration cannot be accurately estimated and the cost cannot be calculated in advance.

Which of the following should the project manager put in place before work begins?
A . Time and materials contract
B . Master service agreement
C . Fixed-price contract
D . Statement of work
E . Cost-plus agreement

View Answer

Answer: A

Explanation:

The project manager should put in place a time and materials contract before work begins for a third party that needs to perform a short-term task for which the duration cannot be accurately estimated and the cost cannot be calculated in advance. A time and materials contract is a type of contract where the buyer pays the seller based on the actual time spent and materials used during the project. A time and materials contract is suitable for projects that have uncertain or variable scope, duration, or cost. A time and materials contract can provide flexibility and adaptability for both parties and allow them to adjust to changing requirements or circumstances.