Asked by Raymonde Armoo (student) on Jun 05, 2024
Verified
Describe a fixed total cost contract.
Fixed Total Cost Contract
A type of contract where the contractor is paid a set amount for the work, regardless of the actual costs incurred.
- Gain an insight into the diverse types of contracts employed in projects and their impact on managing projects.
Verified Answer
SH
Sandra HowellJun 08, 2024
Final Answer :
If the service provider is responsible for incorporating all costs, including profit, into the agreed price, it is a fixed total cost contract. The contractor assumes the risks for unexpected increases in labor and materials that are needed to provide the service or materials and in the quantity of time and materials needed.
Learning Objectives
- Gain an insight into the diverse types of contracts employed in projects and their impact on managing projects.
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