Certified Professional Contract Manager (CPCM) 2025 – 400 Free Practice Questions to Pass the Exam

Framework pricing arrangements primarily utilize a predefined index or formula for pricing, which allows for flexibility and adjustment based on market conditions or other variables over the life of the contract. This characteristic facilitates the accommodation of fluctuating costs, enabling both parties to maintain fairness in pricing throughout the duration of the agreement. By tying the price to an index or a formula, the arrangement can reflect changes in input costs or inflation, ensuring that the pricing remains relevant and fair without the need for constant renegotiation.

The other options do not capture the essence of framework pricing arrangements. A determined price at contract signing suggests a fixed cost, which does not align with the flexible nature of framework pricing. A 100% upfront payment requirement would imply immediate full payment, contradicting the structure typically seen in framework agreements that accommodate periodic adjustments. Lastly, having no fixed price until project completion suggests a highly uncertain pricing structure, which is generally not the case in framework pricing where some level of pricing stability is intended through the use of indexes or formulas.