which type of contract has a point of total assumption? course hero

Who assumes responsibility for every additional dollar spent in fulfillment of contract?

Point of total assumption PTA 61 Three types of cost reimbursable contracts ... A contract statement of work is a type of _____ statement that describes the work in sufficient detail to allow prospective suppliers to determine if they can provide the required goods and services and ... Course Hero is not sponsored or endorsed by any college or ...

What expenses are included in cost plus types of contracts?

ANS point of total assumption PTA PTS 1 DIF Difficulty Easy REF p486 OBJ LO 12 2 from ITM 750 at Ryerson University ... A contract statement of work is a type of _____ statement that describes the work in sufficient detail to allow prospective suppliers to determine if they can provide the required goods and ... Course Hero member to access ...

What are the advantages of a contract type contract?

Which type of contract has the least amount of risk. School Hanoi University; Course Title FACULTY OF 1; Uploaded By MinisterMonkey13132. Pages 74 Ratings 100% (1) 1 out of 1 people found this document helpful; This preview shows page 42 - 45 out of 74 pages. ...

What are the factors to consider when determining the cost of contract?

a) PTA is the cost at which the contractor assumes total responsibility for each additional dollar of contract cost b) Contractors do not want to reach the point of total assumption c) The customer is hurt most by cost overruns d) Beyond the Point of Total Assumption, the seller’s profitability decreases

Why are tradeoffs necessary?

Tradeoffs are almost always necessary because: Circumstances can change, thus mandating trade-offs to take place. The person who may be ultimately responsible for approving the tradeoff is the: Customer. The most common tradeoffs occur on: Time, cost and quality.

What is a fixed price contract?

A fixed price contract is typically sough by the project manager from the customer's organization when: The risk and consequence associated with the contracted task are large and the customer wishes to transfer the risk.

What is the order of precedence in a specification document?

The order of precedence is: The document that specifies the order (priority) in which project documents will be used when it becomes necessary to resolve inconsistencies between project documents.

What is contractual statement of work?

The contractual statement of work document is: A narrative description of the work/deliverables to be accomplished and/or the resource skills required. A written or pictoral document that describes, defines or specifies the services or items to be procured is: A specification document. The order of precedence is:

What is the effect of a project that is experiencing progressively increasing risk on a person or an organization that is

Explain the effect of a project that is experiencing progressively increasing risk on a person or an organization that is considered to be risk averse: As risk increases a person or an organization can become more uncomfortable with the environment.

What are the two components of risk?

Obtain information about causes and then make a decision when you have all of the available data. The two major components of a risk are: Uncertainty and impact.

What is Firm-Fixed Price?

A Firm-Fixed-Price (FFP) ( FAR Subpart 16.2) contract provides for a price that is not subject to any adjustment on the basis of the contractor’s cost experience in performing the contract. This contract type places upon the contractor maximum risk and full responsibility for all costs and resulting profit or loss. It provides maximum incentive for the contractor to control costs and perform effectively and imposes a minimum administrative burden upon the contracting parties.

What is an FFP contract?

A FFP contract is suitable for acquiring commercial items or for acquiring other supplies or services on the basis of reasonably definite functional or detailed specifications when the contracting officer can establish fair and reasonable prices at the outset, such as when: ( FAR Subpart 16.202-2)

What is performance uncertainty?

Performance uncertainties can be identified and reasonable estimates of their cost impact can be made, and the contractor is willing to accept a firm fixed price representing the assumption of the risks involved.

What is adequate price competition?

There is adequate price competition; There are reasonable price comparisons with prior purchases of the same or similar supplies or services made on a competitive basis or supported by valid cost or pricing data; Available cost or pricing information permits realistic estimates of the probable costs of performance; or.

What is lump sum contract?

A lump sum or fixed price contract is the type of contract where all construction-related activities are regulated with a total fixed price agreement. Lump sum contracts are favored in situations when a clear scope and a defined schedule is negotiated and accepted. For example, if it is necessary to shift the liability to ...

What is an adhesion contract?

Adhesion contracts are created by an advantageous bargaining party. They allow the weaker side only the possibility to accept the contract or to reject it. It is also known as a "Take it or leave it" type of deal.

What is time and materials contract?

Time and materials contracts are types of contracts used in a case where: The capacity and quantity of time and materials is undetermined, which makes the project risky. The owner and the contractor are compatible with the tariff per hour or per day, including possible additional costs during construction. Periodically, the owner can determine ...

What is the downfall of a contractor contract?

The downfall of this type of contracts is that the seller can increase an indefinite or unknown expense amount, which is the cost the buyer has to pay.

What is a specific type of contract?

A specific type of contract regulates the risks and expenses for the contractor. Two different kinds of groups of contracts are fixed price contracts and cost-reimbursement contracts. Different types of contracts, which are contained within each of these two types of groups, may be used separately or in combination with one another.

What is contract in business?

A contract is an agreement between two entities or individuals, which serves as legal protection for both parties involved in a potential business deal. There are different types of contracts, and each determines the rights and duties of both sides. A specific type of contract regulates the risks and expenses for the contractor.

Is a joint agreement implied in law?

The contract can either be implied in fact or implied in law. Implied in fact contract. The joint agreement creates obligations and promised intentions among the parties, where both are not expressed in words.