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of risk associated with completing that project. For a firm fixed price contract, payment for risk
A.1) Is accomplished by paying the contractor for his costs plus a fixed fee (profit) and2)Is an undisclosed contingency in the contractor's bid.
B. Is accomplished by paying for the budgeted costs of dealing with risks, as predicted in the project risk assessment.
C. Is an undisclosed contingency in the contractor's bid.
D. Is accomplished by paying the actual costs to the contractor.
B. Is accomplished by paying for the budgeted costs of dealing with risks, as predicted in the project risk assessment
of course not It is may depened on the the type of project , financial resourses or the time the owner want to use the project
The right answer is: C
The answer is relative to the type contract drafted and the implied provisions. Always safe guard the contractual payment provisions with a QA clause and time parameters required.
The most suitable option is
C. Is an undisclosed contingency in the contractor's bid.
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