This category of contract includes incentive clauses based on the seller meeting certain project objectives, such as schedule targets or cost targets.
A) Fixed-price
B) Cost-reimbursable
C) Time and material
D) Lump-sum

Question

Quizplus · Accepted Answer

Cost-reimbursable contracts allow for incentives based on meeting specific project objectives, such as staying within a certain budget or completing the project within a certain timeline. This type of contract is more flexible than fixed-price or lump-sum contracts because costs can fluctuate depending on the project's needs. Time and material contracts are similar to cost-reimbursable contracts but are typically used for smaller projects.

This Category of Contract Includes Incentive Clauses Based on the Seller