A PROJECT MANAGER DISCOVERS THAT THERE IS A PART OF THE PROJECT THA...

2. A project manager discovers that there is a part of the project that con-

tains some risk. His or her strategy with this risk is to subcontract the

work to an outside supplier by using a firm fixed price contract. Which

of the following is true?

a. The supplier will include an allowance for the risk in the contracted

price.

b. The supplier will lose money on the contract.

c. The project manager will have to compensate the supplier if the risk

occurs.

d. The project manager will assist the supplier with the project team if

the risk occurs.