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	<title>PMServicesNW &#187; pricing a project</title>
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		<title>Fixed Price vs. T&amp;M</title>
		<link>http://www.pmservicesnw.com/2010/11/fixed-price-vs-tm/</link>
		<comments>http://www.pmservicesnw.com/2010/11/fixed-price-vs-tm/#comments</comments>
		<pubDate>Mon, 01 Nov 2010 13:31:18 +0000</pubDate>
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				<category><![CDATA[Pricing]]></category>
		<category><![CDATA[Project Management]]></category>
		<category><![CDATA[fixed price]]></category>
		<category><![CDATA[pricing a project]]></category>
		<category><![CDATA[project budgeting]]></category>
		<category><![CDATA[project pricing]]></category>
		<category><![CDATA[project pricing options]]></category>
		<category><![CDATA[T&M]]></category>
		<category><![CDATA[time and materials]]></category>
		<category><![CDATA[types of project pricing]]></category>

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		<description><![CDATA[By: Ray Myers, Jr., PMP There are many ways to price a contract, the most common being Firm Fixed Price and T&#38;M.  Selecting the right contract type for your project shouldn’t be a big deal; each one has its own advantages and disadvantages.  The Project Manager should have a firm understanding and working knowledge of the various contract types and how their use may affect project outcomes. Contract Types Firm Fixed Price (FFP): The fee to provide the product or services is quoted and fixed for the duration of the contract.  FFP contract shifts the project risks to the Provider, who is responsible for cost, performance and profit or loss.  The Buyer pays a fixed fee and does not need to know what the Provider is actually spending on the project. Time and Materials (T&#38;M):  The fee is quoted as an hourly rate plus the cost of materials, supplies, or travel expenses.  The T&#38;M contract is used when the Buyer wants full control over the project.  Provider profits are factored into the hourly rate and the Buyer is billed for the hours worked. Cost Plus:  There are actually several variations of Cost Plus, they include: Cost Plus Incentive Fee (CPIF), [...]]]></description>
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