_____ is a contract based on an agreed-on unit price for services or materials if the amount needed is not known accurately.
A) Cost reimbursable contract with a percentage fee
B) Cost reimbursable contract with a fixed fee
C) Fixed price with incentive fee contract
D) Fixed unit price contract
E) Fixed unit cost contract

Question

Quizplus · Accepted Answer

A fixed unit price contract is appropriate when the amount of services or materials needed is not known accurately. This type of contract establishes a fixed price per unit of service or material delivered, such as per hour of service or per ton of material. The total price for the project is then calculated based on the actual amount of services or materials delivered, multiplied by the unit price. This type of contract provides a clear and predictable cost structure for both the client and the contractor.

_____ Is a Contract Based on an Agreed-On Unit Price