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Which of the following statements are true in a cost plus contract?
I The only firm figure is the fee
II The total man-hours cannot be estimated
III The equipment rate is not firm

1.   ?    I only
2.   ?    II only
3.   ?    I and II only
4.   ?    I, II and III

The make or buy decision is usually made at which stage of the contracting cycle?

1.   ?    Requirement
2.   ?    Solicitation
3.   ?    Award
4.   ?    Contract management

When is a FFP contract typically sought by the customer's project manager?

1.   ?    When the risk and consequences associated with the contracted project are large
2.   ?    When the customer is proficient at dealing with the contracted project activities
3.   ?    When neither the contractor nor the project manager understand the scope of the task
4.   ?    When the project manager's company has excess production capacity

Which of the following is not a function of contract administration?

1.   ?    Contract change management
2.   ?    Specification interpretation
3.   ?    Determination of breach of contract
4.   ?    Selection of the project manager

Which of the following does not affect a contractor's ability to perform the contracted activities after the contract is signed?

1.   ?    A poor definition of contract deliverables
2.   ?    The extent of project sub-contracting
3.   ?    The complexity of the contracted effort
4.   ?    The contract type

Using the data shown below, if the cost of the work is £13,000, then what will be the final price paid by the customer?
Target Cost: £12,000
Target Fee: £1,000
Sharing Ratio: 80% / 20%
Price Ceiling: £14,000

1.   ?    £12,000
2.   ?    £12,800
3.   ?    £13,000
4.   ?    £13,800

In which of the following types of contract is it most important for the contractor to maintain tight control of cost, schedule and scope changes?

1.   ?    Unit price
2.   ?    Cost Plus Incentive Fee
3.   ?    Cost Plus Fixed Fee
4.   ?    Firm Fixed Price

Which of the following should be considered in the negotiation and selection of a contract type?
I The degree of clarity with which the end product is defined
II Price competition
III Period of performance

1.   ?    I only
2.   ?    II only
3.   ?    I and II only
4.   ?    I, II and III

Using the data shown below, what is the profit at the point of total assumption?
Target Cost: £12,000
Target Fee: £1,000
Sharing Ratio: 80% / 20%
Price Ceiling: £14,000

1.   ?    £300
2.   ?    £500
3.   ?    £750
4.   ?    £800

In which of the following contract types is it easiest to change the scope of the contract?

1.   ?    Firm Fixed Price
2.   ?    Fixed Price Plus Incentive Fee
3.   ?    Cost Plus Incentive Fee
4.   ?    Letter contract