A001. All the following statements about time and materials contracts are true except: a. they are a hybrid type of arrangement that contains aspects of both costreimbursable and fixed-price arrangements b. the seller receives a profit in addition to being reimbursed for allowable costs c. the full value of the agreement is not defined at contract award d. the exact quantity of items to be delivered is not defined at contract award - A001. b. PMBOK ® Guide 12.1.1.9 Y b. This question has the word except in it; therefore, we are looking for the answer that does not belong or is not true. This statement is the definition of a cost-reimbursable contract, not a time and materials contract. N a, c and d. These are all true statements and thus not the correct answer. T& M contracts resemble cost reimbursable type arrangements in that they are open-ended. They resemble fixed price from the standpoint that the price per hour or per day is fixed. Neither the full value of the agreement nor the exact quantity of items to be delivered are defined. A002. History shows that your construction firm ignores lessons learned when it comes to risk. Management believes that if we don't talk about risk it will not happen. In this situation we are likely to see more: a. contingency plans b. backup plans c. fallback plans d. workaround - A002. d. PMBOK ® Guide 11.6.3.2 Y d. Workaround plans are unplanned responses to risks. If our organization does not proactively address risk, we are likely to need more workarounds. N a. Contingency plans are the most common method to actively accept a risk. In this question the organization is not developing contingency plans. The organization is doing nothing in regards to risk. N b and c. Backup plans and fallback plans are examples of contingency plans. Often these terms are used for our second contingency in the case the first one does not work completely. If our organization does not have contingency plans they will not have backup or fallback plans.