Fixed-price contracts are most appropriate for projects that
A) take less than one year to complete.
B) are with customers that want a single payment date.
C) are well defined and entail little risk.
D) involve risk.

Question

Quizplus · Accepted Answer

Fixed-price contracts are best suited for well-defined projects with little risks. This is because the cost of the project is agreed upon beforehand and the contractor assumes the risk of any additional costs or delays. Projects that have undefined or high-risk factors may be more appropriate for other types of contracts, such as time and materials or cost-reimbursable.

Fixed-Price Contracts Are Most Appropriate for Projects That