In a ____, the customer and the contractor agree on a price for the proposed work and that price remains fixed unless the customer and contractor agree on changes.
A) fixed price contract
B) flat price contract
C) actual price contract
D) cost reimbursement contract

Question

Quizplus · Accepted Answer

A fixed price contract, also known as a firm-fixed-price contract or a lump sum contract, sets a specific price for the services or project outlined in the contract. This price remains fixed unless the customer and contractor agree to changes in the scope of work. This type of contract provides the customer with a defined budget and protects them from unexpected cost overruns.

In a ____, the Customer and the Contractor Agree on a Price