Which of the following best explains 'fixed price contract'?
A) Contractor is allowed to fix the price of the contract.
B) Contractor has the price fixed by a third party.
C) Contractor can vary the price during the contract.
D) Contractor agrees to work based on a fixed contract.

Question

Which of the following best explains 'fixed price contract'? 
A) Contractor is allowed to fix the price of the contract. 
B) Contractor has the price fixed by a third party. 
C) Contractor can vary the price during the contract. 
D) Contractor agrees to work based on a fixed contract.

Quizplus · Accepted Answer

A fixed price contract means that the contractor agrees to work based on a fixed contract price. The price is predetermined and agreed upon by both parties at the outset of the project and is not subject to change unless there are agreed-upon changes to the scope of work.

Which of the Following Best Explains 'Fixed Price Contract