Question

What type of contract typically solicits multiple bids

and tries to move all risk the contractor? a) Open book. d) Cost
reimbursement. c) Time and materials d) Fixed price.

Answer 1

d) Fixed Price

Step-by-step explanation:

A fixed-price contract typically solicits multiple bids from contractors and tries to allocate most, if not all, of the risk to the contractor. In a fixed-price contract, the contractor agrees to complete a specific scope of work or deliver a particular product for a predetermined price. The price remains fixed regardless of the actual costs or risks incurred by the contractor. This type of contract is commonly used when the project requirements are well-defined, and the client wants to shift the risk of cost overruns or delays to the contractor.