Preparing Practice Exam…
Please wait a moment while the system generates the exam questions, answers, and study session.
Please wait a moment while the system generates the exam questions, answers, and study session.
Question 23 of 34
Free Preview · 34 of 113 · questions 1–34 of 113 are free. Sign up free to sync your progress across devices.
Select one answer.
Written by other learners. Comments can disagree with the marked answer — check the official documentation when in doubt.
- A lump sum (fixed price) contract is an agreement where the contractor agrees to complete the defined scope of work for a fixed total price. The contractor bears the risk of cost overruns, while the owner bears less cost risk but may pay a premium for this certainty. This contract type works best when the scope is well-defined and design is complete. Changes are handled through change orders which modify the fixed price.