EBK SOFTWARE ENGINEERING
EBK SOFTWARE ENGINEERING
10th Edition
ISBN: 8220101455970
Author: SOMMERVILLE
Publisher: PEARSON
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Chapter 22, Problem 22.6E

Explanation of Solution

Fixed-price contracts:

  • Fixed-price contracts will increase the likelihood of product risks as they remove options from the development process.
  • The contractor is naturally reluctant to increase the effort or time expended on the project as it will reduce their profits on the work because the contract is fixed-price...

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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.
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