A ____ Contract Should Be Used in Cases Where the Parties

question 88

Multiple Choice

A ____ contract should be used in cases where the parties cannot accurately predict labor or materials costs and quantities to be used prior to the execution of the purchase agreement.

• A) fixed-price with escalation
• B) firm-fixed price
• C) cost sharing
• D) time and materials
• E) fixed-price with redetermination

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Definitions:

Ice Ages

Periods of extensive glacial coverage, where major portions of the Earth's surface are covered by ice sheets.

Delta

A landform at the mouth of a river, formed from the deposition of sediment carried by the river as it enters slower-moving or standing water.

Horizontal Layers

Layers of material, such as sedimentary rock, that are deposited in a flat or nearly flat arrangement.

Sediment

Particulate material, ranging from microscopic to large boulders, transported and deposited by water, wind, ice, or gravity.