TOPIC: Cost Reimbursable Vs Time and Material contracts

Hello !

I have carefully read the definitions for both types of contracts in the PMBOK Guide, in the PrepCast, and even in a prep book, but the difference still baffles me.
I understand that both concepts are very similar, you pay your vendor as you go based on the time the vendor spent and the resources the vendor used.

Could you please help me clarify what is the differentiator? It's not always straightforward to choose between the 2 in exam questions !

Thanks a lot
Romain

They certainly are a bit similar in nature. I consider cost reimbursable to be used more often when the scope is uncertain. Time and material a bit more on the side where the scope is understood, but perhaps the duration is uncertain. I tend to find time and material contract terms more simple than cost reimbursable.

Just my experience though, I deal way more with time and material contracts.

Kyle