PMP Formulae: Fixed price (lumpsum): Used when requirements are very clear to the buyer(Detailed SOW)

Time and material contract(Unit price) : Used when requirements are partially clear (Partially detailed SOW)

Cost-reimbursable contracts: Used when requirements are not known (Not a detailed SOW)

Question

Fixed price (lumpsum): Used when requirements are very clear to the buyer(Detailed SOW)

Time and material contract(Unit price) : Used when requirements are partially clear (Partially detailed SOW)

Cost-reimbursable contracts: Used when requirements are not known (Not a detailed SOW)

Ratna Likhita · Accepted Answer

Contract types

Fixed price (lumpsum): Used when requirements are very clear to the buyer(Detailed SOW) Time and material contract(Unit price) : Used when requirements are partially clear (Partially detailed SOW) Cost-reimbursable contracts: Used when requirements are not known (Not a detailed SOW)