A contractor bidding on a fixed-price project must develop
A) accurate and complete cost estimates and include sufficient contingency costs.
B) a well-defined project with low risk.
C) techniques to control costs and reduce expenses to make a larger profit.
D) techniques to determine the cost-at-completion with actual expenditures.

Question

Quizplus · Accepted Answer

A contractor bidding on a fixed-price project must accurately estimate all costs associated with the project to ensure that they are not bidding too high or too low. It is also important to include contingency costs to account for unexpected expenses. A well-defined project with low risk can help with cost control, but it is not the only factor to consider. Techniques to control costs and reduce expenses are important, but they should not compromise the quality or scope of the project. Techniques to determine the cost-at-completion are also important, but they are not the sole focus of the bidding process.

A Contractor Bidding on a Fixed-Price Project Must Develop