Fixed-price contracts are an example of transferring risk from an owner to a contractor.

Name: Fixed-price contracts are an example of transferring risk from an owner to a contractor.
Brand: Quizplus
Rating: 4.8 (43 reviews)

Question

Quizplus · Accepted Answer

In a fixed-price contract, the contractor agrees to deliver a project at a predetermined price regardless of the actual costs incurred, thereby assuming the risk of cost overruns, which transfers the financial risk from the owner to the contractor.

Fixed-Price Contracts Are an Example of Transferring Risk from an Owner