Final answer:
GMP negotiated contracts are not the same as 'Cost plus percent of cost' contracts, as the former includes a set limit on reimbursement while the latter includes payment of all costs plus a percentage. Indexing for inflation in contracts helps maintain the real price over time.
Step-by-step explanation:
The statement 'GMP negotiated contracts are the same as negotiated "Cost plus percent of cost" contracts' is false. GMP stands for Guaranteed Maximum Price, where the contractor is reimbursed for actual costs incurred up to a set limit, while any savings below the maximum price may be shared. In contrast, a 'Cost plus percent of cost' contract entails the buyer paying the seller all the project costs plus a percentage of these costs as profit, which can lead to a lack of incentive for the contractor to keep costs low.
Indexing contracts for inflation is a separate concept, where long-term contracts include provisions that adjust prices based on inflation, ensuring that the real price is maintained over time. This means sellers and buyers are not locked into prices that might become unfavorable due to changes in inflation, which could affect the buyers' or sellers' costs or revenues unfavorably.