In a , the customer agrees to pay the contractor for all actual costs (labour, materials, and so on), regardless of amount, plus some agreed-upon profit.
A)fixed-price contract
B)fixed agreement
C)cost-reimbursement contract
D)work agreement

Question

Quizplus · Accepted Answer

A cost-reimbursement contract is the type of contract where the customer (usually the government) agrees to reimburse the contractor for all actual costs incurred during the project, plus a predetermined fee or profit. This type of contract is commonly used for projects where the scope of work is unclear or subject to change, making it difficult to establish a fixed price. The contractor therefore assumes more risk in terms of cost overruns, but also has the potential to earn higher profits if costs are kept at a minimum.

In a , the Customer Agrees to Pay the Contractor