Cost of Quality (COQ) The Cost of Quality (COQ) is the amount of money it takes to make sure that a product or service meets the quality standards that are needed. This includes the costs of preventing problems, evaluating them, and failing. Prevention Costs: These are the costs that are paid to make sure that problems don’t…
Cost Plus Award Fee (CPAF) Cost Plus Award Fee (CPAF) is a type of contract in which the buyer pays the seller for the actual cost of the work done plus an extra award fee based on the quality of the work. The award fee is a performance-based reward that encourages the seller to do a better…
Cost Plus Fixed Fee (CPFF) A cost-plus-fixed-fee contract is a type of project management contract in which the contractor is paid a fixed fee plus the actual costs they incurred during the project. Before the project starts, the fixed fee is talked about and agreed upon. It is meant to cover the contractor’s costs and give him…
Cost Plus Incentive Fee Cost-Plus-Incentive-Fee (CPIF) is a type of contract used in project management. In a CPIF contract, the buyer agrees to pay the seller back for the actual costs of doing the work, plus an incentive fee that depends on how well the seller meets certain project goals. In a CPIF contract, the incentive fee…
Cost Variance (CV) Cost variance (CV) is a project management number that measures how much a project actually cost compared to how much it was supposed to cost. It helps figure out if a job is under or over price. The method for figuring out the cost difference is: CV = Earned Value (EV) – Actual Cost…
Cost-Reimbursable Contract A Cost Reimbursable Contract is a type of contract used in project management in which the client pays the contractor back for all the costs incurred during the project, including labour, materials, equipment, and other expenses, plus a fee for profit or overhead. Under a cost-reimbursable contract, the contractor is in charge of running the…
Crashing “Crashing” is a term used in project management to describe a way to shorten the project plan by adding more resources to the most important tasks. Crashing is done to finish a job faster or meet a short timeline. Crashing can be done by giving a key path task more resources (like people or tools) to…
Critical Path The critical path is a term used in project management to describe the order of tasks that must be done on time for the project to be finished by the deadline. The critical path is made up of all the tasks that are important to the success of the project and can’t be put off…
