1. As a project manager you need to recognize the characteristics of each contract type. Here's a quick table listing the seven contract types. Provide a quick description of each contract type to help you remember the contracts and their characteristics. In the final column, identify who carries the risk of cost overruns: (5 points)

Contract	Characteristics	Risk Owner
Firm fixed price
Cost plus incentive fee
Fixed-price incentive fee
Fixed-price with economic price adjustment
Cost plus fixed fee
Time and material
Cost Plus award fee

2. You are the project manager of the YZZ Project for your organization. This project is to build a web-based software product that will allow customers to query information in a secured database. You have hired a web developer to create social media applications and mobile phone applications that will also allow access to the secure data. A change has been requested that will affect the project scope for the entire project. This change will also affect the procured services of the application developer. What are some concerns you would have as the project manager in regard to the contract and the approved change? (5 points)

3. You are serving as a project manager of a company that completes projects for others. In your role as project manager for the seller, how can you best represent the profit-driven goals of your company and still best represent the buyer? (2 points)

4. Christine's is the project manager for her organization. Her organization has hired the AFG Contractors to build a large, stone patio as part of Christine's current project. The AFG Contractors company reports that they would like to be paid for the materials and work performed so far. What activities should Christine complete in regard to the payment request? (3 points)