Question 1
A software vendor proposes time-and-materials billing for work with fixed, fully specified acceptance deliverables. What should the project manager do NEXT to address the underlying project need?
Explanation
Correct Answer
The proposed action directly addresses the specific challenge: Evaluate whether a fixed-price or milestone-based contract better allocates defined delivery risk. The relevant success check is: Selected contract terms align verification, incentives, change handling, and accountable ownership. This avoids the underlying failure: Unexamined contract selection may shift predictable cost risk to the customer unnecessarily.
Incorrect Answers
A pay-as-you-go model without controls can create unbounded operating exposure. The specific problem here is that unexamined contract selection may shift predictable cost risk to the customer unnecessarily.
A single big-bang cutover magnifies impact if legacy data problems emerge. The specific problem here is that unexamined contract selection may shift predictable cost risk to the customer unnecessarily.
Factory inspection alone cannot establish implementation quality at distributed locations. The specific problem here is that unexamined contract selection may shift predictable cost risk to the customer unnecessarily.