91. What are the contrct types in project | fixed,cost reimbursable,unit cost

Let's learn about the various Contract Types in project procurement management as per PMI PMP PMBOK guidance.
First let's look into Cost Reimbursable or Cost Plus contracts as per PMP definition.
This category of contract involves cost reimbursement payments to the seller for all legitimate actual costs incurred for completed work, plus a fee representing seller profit.
- Cost Plus Fee
- Cost Plus Percentage of Costs
- Cost Plus Fixed Fee
- Cost Plus Incentive Fee
- Cost Plus Award Fee
example. Cost plus a fee of $40,000
Next contract type is Time and Material or Unit Price
This type of contracts are a hybrid type of contractual arrangement that contain aspects of both cost-reimbursable and fixed-price contracts.
They are often used for staff augmentation, acquisition of experts, and any outside support when a precise statement of work cannot be quickly prescribed.
Generally this type is used for smaller projects
example. $25 per hour + material cost
Next type of contract is Fixed Price or Lump Sum.
This category of contracts involves setting a fixed total price for a defined product,service, or result to be provided.
- Fixed Price Incentive Fee
- Firm Fixed Price
- Fixed Price minus Economic Price Adjusted

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