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	<title>PMServicesNW &#187; T&amp;M</title>
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		<title>Types of Contracts</title>
		<link>http://www.pmservicesnw.com/2011/01/types-of-contracts/</link>
		<comments>http://www.pmservicesnw.com/2011/01/types-of-contracts/#comments</comments>
		<pubDate>Sat, 22 Jan 2011 03:37:47 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Procurement]]></category>
		<category><![CDATA[contract types]]></category>
		<category><![CDATA[cost plus fixed fee]]></category>
		<category><![CDATA[cost plus incentive fee]]></category>
		<category><![CDATA[FF]]></category>
		<category><![CDATA[FFP]]></category>
		<category><![CDATA[Firm Fixed Price]]></category>
		<category><![CDATA[Fixed Fee]]></category>
		<category><![CDATA[T&M]]></category>
		<category><![CDATA[time and materials]]></category>

		<guid isPermaLink="false">http://www.pmservicesnw.com/?p=2310</guid>
		<description><![CDATA[By Ray Myers, Jr., PMP Frequently, project managers must procure products and/or services to fulfill the requirements of their projects.  Project managers usually enter into contracts with sellers to purchase the products and/or services. These purchase contracts are legal relationships that define the terms of the transaction and should always define how payment will be made.  Here are the most common contract types. Fixed Price or Lump Sum The buyer and seller agree to a predetermined price. The buyer pays a Fixed Fee (FF) or Firm Fixed Price (FFP) for a well-defined product or service.  The fixed fee included all sellers’ costs and profit. Cost Reimbursable The buyer pays the seller for direct and indirect costs. Cost Plus Incentive Fee (CPIF) – the buyer pays the seller for allowable performance costs plus a predetermined fee an incentive fee.  The incentive fee is the sellers’ profit. Cost Plus Fixed Fee (CPFF) – the buyer pays the seller for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs.  The fixed fee is the sellers’ profit. Cost Plus Percentage of Costs (CPPC) – the buyers pays the sell for allowable performance costs plus a predetermined percentage [...]]]></description>
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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>
		<dc:creator>admin</dc:creator>
				<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>

		<guid isPermaLink="false">http://www.pmservicesnw.com/?p=24</guid>
		<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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		<title>Project Pricing – T&amp;M</title>
		<link>http://www.pmservicesnw.com/2010/09/project-pricing-%e2%80%93-tm/</link>
		<comments>http://www.pmservicesnw.com/2010/09/project-pricing-%e2%80%93-tm/#comments</comments>
		<pubDate>Thu, 30 Sep 2010 04:33:01 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Cost]]></category>
		<category><![CDATA[Pricing]]></category>
		<category><![CDATA[project pricing]]></category>
		<category><![CDATA[project pricing T&M]]></category>
		<category><![CDATA[T&M]]></category>
		<category><![CDATA[time and materials]]></category>

		<guid isPermaLink="false">http://www.pmservicesnw.com/?p=1826</guid>
		<description><![CDATA[By Ray Myers, Jr., PMP T&#38;M, short for Time and Materials, is a common pricing methodology that is used when the project scope is not clearly defined or when the scope frequently changes.   T&#38;M contracts are ideal for small projects or tasks because the client pays for only the actual hours worked and the materials used on the project.  This arrangement gives the client the greatest leverage for obtaining services at the lowest possible price. T&#38;M pricing is quoted based on an hourly, daily, weekly or monthly rate.  The service provider’s profit is built into the quoted hourly rate and any materials used during the course of the project.  Travel expenses are generally reimbursed at cost.  The client’s cost is determined like this:   (Hours Worked x Hourly Rate) + Materials + Expenses   Advantages to the Client Generally less expensive than fixed price or flat rate pricing Provides greatest flexibility when the project scope is not clearly defined Enables scope changes without the hassle of scope control or change management procedures Provides the most control over the project Easy to terminate or cancel the project Disadvantages to the Client Overall responsibility for the project scope, all project deliverables, [...]]]></description>
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