Cost-reimbursable contracts work best in situations when the size of the project makes it difficult to define 100 percent of the tasks, thus making the budget estimate less accurate.

Question

Quizplus · Accepted Answer

Cost-reimbursable contracts are based on the actual cost of the project, with a fee or profit percentage added to cover the contractor's costs. These types of contracts are often used in situations where the project scope is not well-defined, making it difficult to accurately estimate costs. Therefore, option A is the correct answer.

Cost-Reimbursable Contracts Work Best in Situations When the Size of the Project