When Buying Highly Technical, Few-Of-A-Kind Products Such as Hydroelectric Power

question 231

Multiple Choice

When buying highly technical, few-of-a-kind products such as hydroelectric power plants, governments have found that general contractors are reluctant to specify a formal, fixed price for the procurement. Therefore, these contractors use ________ to compensate them for any cost overruns.

• A) at-market pricing
• B) experience-curve pricing
• C) cost-plus-fixed-fee pricing
• D) standard markup pricing
• E) yield management pricing

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Definitions:

Liable to Third Parties

The legal responsibility of an individual or entity towards individuals who are not a direct party to a contract or agreement.

Professional's Expertise

The specialized knowledge and skills possessed by a professional in their field of work.

Relied Upon

A term used to describe something that is trusted or depended on for support, help, or decision-making.

Cross-functional Teams

Groups composed of members from different departments or areas of expertise working together toward a common goal.