A contract where the contractor agrees to perform the work at a fixed price best defines
A)cost-plus fixed fee contract.
B)fixed-price incentive fee contract.
C)fixed-price contract.
D)cost-plus incentive fee contract.

Question

Quizplus · Accepted Answer

A fixed-price contract is where the contractor agrees to perform the work at a fixed price. This means that the contractor assumes the risk of any cost overruns and is responsible for completing the project within the agreed-upon price. In contrast, a cost-plus fixed fee contract allows for the contractor to be reimbursed for costs and provided with a fixed fee on top, and a fixed-price incentive fee contract includes performance incentives in addition to the fixed price. A cost-plus incentive fee contract allows for the contractor to be reimbursed for costs and provided with a fee that is adjusted based on the contractor's performance.

A Contract Where the Contractor Agrees to Perform the Work