A type of contract where the fixed price is negotiated or set as the final price for a specific product or service describes a:
A)Cost-Reimbursable contract
B)Time and Materials contract
C)Fixed Price/Lump Sum contract
D)Cost plus fixed fee contract
E)Cost-plus-incentive-fee contract

Question

Quizplus · Accepted Answer

A Fixed Price/Lump Sum contract is the type of contract where the price is predetermined and agreed upon by both parties. The contractor must deliver the product or service for the fixed price, regardless of any unexpected costs or additional work required.

A Type of Contract Where the Fixed Price Is Negotiated