Which of the following types of contracts involves payment to the seller for the seller's actual costs plus a fee typically representing the seller's profit?
A) fixed-price contract
B) cost-reimbursable contract
C) equitable adjustment contract
D) direct cost contract

Question

Quizplus · Accepted Answer

Cost-reimbursable contracts involve paying the seller for their actual costs incurred during the project, plus the fee representing their profit. This is different from fixed-price contracts, where the price is agreed upon upfront, and equitable adjustment contracts, which typically involve adjustments to an existing contract due to unforeseen circumstances. Direct cost contracts are not a commonly used term in project management.

Which of the Following Types of Contracts Involves Payment to the Seller