You have replaced an earlier project manager in a project .The earlier project manager has left the organization and you are now responsible for the project

You have replaced an earlier project manager in a project .The earlier project manager has left the organization and you are now responsible for the project.On reviewing the project management plan you are disturbed because a number of procurement contracts have been signed and they all turn out to be Cost plus fixed fee types of contracts - why are you worried ?
Correct Answer : C
As a project manager - you indeed have a reason to be worried if your project has already signed off on Cost Plus Fee type of contracts.This is because in such contracts - you the buyer needs to pay the seller for all the costs and in addition an agreed percentage of the cost.As a result there is no motivation on the seller to control the costs - infact it is in the interest of the seller to increase the costs.It is not necessary that all projects should always be T and M or Fixed Price.Option A is clearly wrong since all the risks are infact with the buyer not the seller!The correct answer is Option C