Question

The project to build an art museum for the city is in the planning stages. The project manager has determined that the installation of the marble water feature should be outsourced because his company does not have the necessary expertise. The vendor proposals specify different contract types: cost-plus-fixed-fee, fixed-price, cost-plus-incentive-fee, and time and materials. Which of the proposals present the least probability of loss for the buyer?

Answer 1

d. proposals that use fixed-price

Step-by-step explanation:

Based on the information provided it can be said that the type of proposal that will present the least chance of loss for the buyer would be proposals that use fixed-price. This is because the person that accepts the proposal will know exactly how much money they will have to pay and will not have to deal with any surprise expenses.