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Your company had a contract to renovate a large auditorium of a multinational company for $650,000. There is a flexible due date to complete the renovation. Which type of contract to sign in this case

User Dsfbmmg
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1 Answer

7 votes

Answer:

the options are missing:

  • a) Cost-plus Fee
  • b) Time and Material
  • c) Fixed Price
  • d) Fixed cost-plus profit

the answer is: c) Fixed Price

Step-by-step explanation:

Cost-plus Fee contract involves a contractor being paid its building costs plus a certain fee or profit. Doesn't apply here because the price if fixed.

Time and Material

s contract are similar to cost-plus fee since the contractor is paid for labor and materials costs plus a margin during the time required to finish the construction.

Fixed cost-plus profit contract includes a bonus for good performance, which generally results from finishing early.

User Suresh Ram
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