In a ____, the customer agrees to pay the contractor for all actual costs (labor, materials, and so forth), regardless of amount, plus some agreed-upon profit.
A) fixed price contract
B) fixed agreement
C) cost reimbursement contract
D) work agreement

Question

Quizplus · Accepted Answer

A cost reimbursement contract is the only option that fits the description given, as it involves the customer paying for all actual costs incurred by the contractor, along with an agreed-upon profit. A fixed price contract, on the other hand, involves a set price for the entire project or scope of work, while a fixed agreement and work agreement are not commonly used contract types in the construction industry.

In a ____, the Customer Agrees to Pay the Contractor