This category of contract is appropriate when the SOW is sufficiently detailed and stable and the seller can prepare an accurate fixed price for completing the work.
A) Fixed-price
B) Cost-reimbursable
C) Time and material
D) Irrevocable

Question

Quizplus · Accepted Answer

A fixed-price contract is suitable when the scope of work is clear, detailed, and stable. The seller can prepare an accurate estimate of the total cost to complete the work, and the buyer can agree to a set price for the entire project. This type of contract places the risk of cost overruns and schedule delays on the seller, who is motivated to complete the work within budget and on time to maximize profits.

This Category of Contract Is Appropriate When the SOW Is