When a contract states that the contractor will be reimbursed all project costs by the owner plus an added amount for profit, this is known as a ____.
A)contingency
B)cost contract
C)lump-sum
D)cost-plus contract

Question

Quizplus · Accepted Answer

This type of contract is known as a cost-plus contract. The contractor is reimbursed for all project costs, including labor, materials, and any other expenses, and also receives an additional amount for profit. This type of contract is often used in situations where the project scope or timelines may be uncertain, as it provides the contractor with greater financial protection.

When a Contract States That the Contractor Will Be Reimbursed