International Project Management Association (IPMA) Practice Exam

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Study for the International Project Management Association (IPMA) Exam. Prepare with flashcards and multiple choice questions; each question includes hints and explanations. Get ready for your exam!

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All of the following are contract types except:

Cost reimbursable
Make or buy
Re-measurable
Unit price

The correct answer is: Make or buy

The option that identifies a choice not classified as a contract type is indeed correct. "Make or buy" is a decision-making process related to project management and procurement, whereas the others are all types of contracts that outline the terms and conditions for the provision of goods and services. Cost reimbursable contracts involve payment to the contractor for their allowable costs, plus an additional payment to allow for a profit. Re-measurable contracts allow for adjustments based on actual quantities delivered or executed, providing flexibility in pricing based on work performed. Unit price contracts specify a set price per unit of work, which is useful when the total quantity of work is uncertain at the contract's outset. Contrastingly, "make or buy" looks at whether to produce an item internally or purchase it from an external supplier, reflecting a strategic decision rather than a contractual framework, which is why it stands out as the correct answer to this question.