Contract Changes in the Fourth Edition PMBOK®

Posted on January 7, 2010 by

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Contract categorization has changed from the Project Management Institute’s third edition PMBOK to the fourth edition. The formerly simple Fixed Price has been split into three types. The old Cost Plus Fee and Cost Plus Fixed Fee are now both considered Cost Plus Fixed Fee. Cost Plus Incentive Fee has remained the same, except that in the cases of a subjective award fee, the contract type is now called Cost Plus Award Fee. Time and Materials contracts have remained the same.

To read more about the descriptions of these contract types, please see the earlier postings of Fixed Price Contracts (posted 4/16/2009), Cost-Reimbursable Contracts (posted 4/17/2009), and Time and Materials Contracts (posted 4/20/2009).