PMI Construction Professional Practice Mode

Community Discussion

Written by other learners. Comments can disagree with the marked answer — check the official documentation when in doubt.

• Chose B0

  - A cost-plus contract (also called cost-reimbursable) requires the owner to pay the contractor for actual costs incurred (labor, materials, equipment, subcontractors) plus an agreed-upon fee for overhead and profit. The fee may be a fixed amount or a percentage of costs. The owner bears more cost risk but gains flexibility and transparency. This type works well when scope is not fully defined or when the project requires flexibility.