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The type of contract (payment mechanism) chosen for a project is often a reflection of the degree?

 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.

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Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2016/07/22
Yaqoub Alomar
by Yaqoub Alomar , Civil Engineer , Al-Zubeir municipality

B. Is accomplished by paying for the budgeted costs of dealing with risks, as predicted in the project risk assessment

George Fawzy
by George Fawzy , quality control engineer , Aybco for contracting

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

Ksenija Kancelak
by Ksenija Kancelak , Construction Project Manager , City of Koprivnica, Koprivnica (Croatia)

The right answer is:       C

Terrence Walmsley
by Terrence Walmsley , Owner , The Awesome Group of Companies

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.

Muhammad Farooq
by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.

The most suitable option is

C. Is an undisclosed contingency in the contractor's bid.

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