A blog that looks at all aspects of project and program finances from budgets, estimating and accounting to getting a pay rise and managing contracts.
Written by Elizabeth Harrin from RebelsGuideToPM.com.
In this video I talk about three different types of contract: fixed price, cost plus and time and materials. I’ll explain each type and the kinds of things they are used for.
What sort of contracts do you use on your projects? Let us know in the comments below.
Pier Luigi CalabriaProject Manager| INFORM Institut für Operations Research und Management GmbH, Aachen, GermanyAachen, Germany
Useful. I have to admit that most of the realities that I know, who act as service providers (basically the "seller") tend to do FP contract, which is actually not the suggested way to do so. Is it for reducing the admin? Or what (in your opinion)?
Elizabeth HarrinDirector| RebelsGuideToPM.comLondon, England, United Kingdom
Pier, I know a lot of people do fixed price contracts (including me). It is a lot less admin, and it's practical for everyone if the seller is sure they can do the work for the price.
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
That's probably not the case in construction though - Fixed Price contracts are not always used as normally there are lots of changes involved, no matter what.
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