Show your understanding of the contract trade-off skills that a project manager must possess. In Part I, Section 12.1.1.6, of the PMBOK Guide, review the following contract types:Fixed-price contracts

Show your understanding of the contract trade-off skills that a project manager must possess.

1. In Part I, Section 12.1.1.6, of the PMBOK Guide, review the following contract types:
   • Fixed-price contracts (three sub-types)
   • Cost-reimbursable contracts (three sub-types)
   • Time and materials contracts
2. Then, describe each contract type and explain whether it is the seller or buyer who prefers that contract type. Provide an example of when each contract type is generally considered the optimal choice. Add different examples than those provided in your PMBOK Guide, in the lecture material, and by your classmates.
3. Support your positions with at least one current (no older than five years) scholarly source, beyond the course materials and textbooks in APA format. Initial post response should be 250-350 words.

Here is an example of what is expected in this discussion using the firm-fixed price (FFP) contract as an example: In the FFP, the contractor is paid a fixed price to do a specific job that is described in the contract. The firm-fixed price contract is generally used when the work is well defined. For example, the firm-fixed price contract might be used when putting a roof on a building, where the buyer and contractor have good experience pricing a specific type of roof by the square foot. The buyer would benefit in knowing that the roof will be completed for a set price, but the seller may have to bear the cost of any issues that arise during completion of the job.