Final answer:
False. A contract that states the customer will pay the contractor whatever the actual costs are for materials and time is known as a cost-plus contract.
Step-by-step explanation:
A contract might be for a fixed price or based on actual costs for materials and labor. True or False? False. A contract that states the customer will pay the contractor whatever the actual costs are for materials and time is known as a cost-plus contract.
In a cost-plus contract, the contractor is reimbursed for the actual expenses incurred plus an additional fee for profit. This type of contract is commonly used in construction projects where costs can vary.