Contracts & ExecutionQuestion 149 of 690
A contract bids a job at a single total price covering all labor, materials, and overhead, regardless of actual cost. This is a:
a.Cost-plus-fee contract
b.Time and materials contract
c.Unit-price contract
d.Fixed-price (lump sum) contract
Explanation
A fixed-price or lump-sum contract sets one total price for the entire scope. The contractor profits if costs come in low and loses if they run high, bearing the cost risk.
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