An organization is starting a project with requirements that are expected to change frequently. The client wants to begin work without delay and agrees to pay the contractor based on the hours worked and costs incurred during the project. Which type of contract should the project manager recommend for this situation?
A time and materials contract is suitable because it offers flexibility for projects with evolving requirements. It allows the contractor to bill for the actual time spent and costs incurred, accommodating the changing scope. Fixed-price contracts are less appropriate because they require a well-defined scope and might not adjust easily to changes. Cost-plus contracts reimburse costs plus a fee but may not encourage efficiency. Unit-price contracts are based on a fixed rate per unit of work, which is impractical when work units are not clearly defined due to frequent changes.
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