If the government wants to contract a very large scale project with significant uncertainty about what the final cost will be; often a cost-plus contract is awarded to attract qualified contractors who may otherwise NOT be willing to accept the risks inherent in a guaranteed bid price.

Question

Quizplus · Accepted Answer

A cost-plus contract is often used for projects with significant uncertainty about the final cost, as it allows for the contractor to be reimbursed for their actual costs plus a percentage markup. This can help to mitigate some of the risks associated with a fixed bid price.

If the Government Wants to Contract a Very Large Scale