What Is the Fundamental Difference Between a Fixed-Price and a Cost-Plus

question 68

Multiple Choice

What is the fundamental difference between a fixed-price and a cost-plus contract?

• A) On fixed-price contracts partnering is used while it is not used for cost-plus contracts.
• B) On fixed-price contracts macro estimates are used while micro estimates are used for cost-plus contracts.
• C) No scope changes are made on fixed-price contracts while scope changes are allowed for cost-plus contracts.
• D) On fixed-price contracts the cost is set in advance while for cost-plus contracts it is established after the project is completed.
• E) On fixed-price contracts contractors are used while on cost-plus contracts no external contractors are used.

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