What is not listed as Cost-Plus Contracts?

  • A. The contractor with the lowest bid agrees to perform all work specified in the contract at a fixed price
  • B. The contractor is reimbursed for all direct allowable costs (materials, labor, travel) plus an additional prior-negotiated fee (set as a percentage of the total costs) to cover overhead and profit
  • C. Risk to client is in relying on the contractor’s best efforts to contain costs
  • D. Controls on contractors

Answer: Option A