Cost-based contracts are inappropriate for situations in which there is a risk that a large contingency fee might be included.

Question

Quizplus · Accepted Answer

Cost-based contracts are appropriate for situations where a large contingency fee might be included as they are designed to cover all the costs of the project, including any unforeseen circumstances or additional work that may arise. In fact, cost-based contracts are often used precisely for this reason, as they provide the contractor with some protection against unexpected costs.

Cost-Based Contracts Are Inappropriate for Situations in Which There Is