PMI Agile Certified Practitioner PMI ACP · Free Practice Question Medium

Question 31

Ranjit has begun working on a new Agile project with Aims Technology Company. However, he is having trouble determining the best contracting technique to use for the project. Ranjit needs to incorporate new ideas and innovations not planned initially. The project also requires that he be able to integrate additional contingency hours into the project as needed. Within this project, Ranjit has a limited budget that he cannot exceed. Of the following choices given, which contracting technique should Ranjit choose?
  • A Multi-tiered structure
  • B Not-to-exceed time and materials
  • C Team augmentation
  • D Emphasize value delivered
Reveal correct answer

Correct answer: B

Explanation

The not-to-exceed time and materials technique is the correct answer. It is an alternative to limiting the overall budget to a fixed amount. This allows the customer to incorporate new ideas and innovations into the project not originally planned. Also, additional contingency hours could be planned into the maximum budget if considered helpful.Team augmentation, emphasize value delivered, and multi-tiered structure are also contracting techniques but are not related to the description.

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