Question

Which of the following best describes a Cost Plus type of contract? Work is not fully known at the outset but is required to be completed Work is fully defined at the onset but may not all be required Work will be compensated as activity groups are completed Public competition to secure best value for the project

Answer 1

Answer - Work is not fully known at the outset but is required to be completed

• This is a cost-plus type of contract because here the risk is reduced as the project/work completion and certain profit is guaranteed.
• It helps & is usually taken because such cost-plus contracts offer greater flexibility to make the changes and hence work might not be fully known at the outset but is still required to be completed.

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