In a project for the electrical layout of a hotel, which type of contract would be best if you have a detailed Work Breakdown Structure?

A fixed-price contract is the best choice when a detailed Work Breakdown Structure (WBS) is available for a project, such as in the case of the electrical layout of a hotel. This type of contract provides a set price for the completion of the project based on the clearly defined scope and deliverables outlined in the WBS.

When the project scope is well understood and detailed, a fixed-price contract allows for clear expectations regarding what work will be completed for the specified price. This helps streamline budgeting and financial planning, as the project owner knows the total cost upfront. Moreover, the contractor is incentivized to control costs and deliver efficiently because they retain any profit that comes from completing the work under budget.

In contrast, a time and materials contract is more suitable when the scope of work is uncertain, as it allows flexibility and payment for actual time spent and materials used. Similarly, a cost-reimbursable contract would be appropriate when uncertainties exist that may affect project costs, making it less ideal if the details of the project are already outlined in a WBS. A blanket purchase order does not fit the scenario, as it is typically used for ongoing purchases rather than a defined project with specific deliverables.