Fixed-price contracts, where the contractor bids a fixed price to complete a system development, may be used to move project risk from client to contractor. If anything goes wrong, the contractor has to pay. Suggest how the use of such contracts may increase the likelihood that product risks will arise.

Information Technology Project Management
9th Edition
ISBN:9781337101356
Author:Kathy Schwalbe
Publisher:Kathy Schwalbe
Chapter11: Project Risk Management
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Fixed-price contracts, where the contractor
bids a fixed price to complete a system
development, may be used to move project risk
from client to contractor. If anything goes
wrong, the contractor has to pay. Suggest how
the use of such contracts may increase the
likelihood that product risks will arise.
Transcribed Image Text:Fixed-price contracts, where the contractor bids a fixed price to complete a system development, may be used to move project risk from client to contractor. If anything goes wrong, the contractor has to pay. Suggest how the use of such contracts may increase the likelihood that product risks will arise.
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