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A. Cost plus fixed fee (CPFF) B. Cost plus percentage of costs (CPPC) C. Time and Materials (T&M) D. Fixed price (FP)
Contract type most favorable or most risky, is a matter of selection according to the nature of job. The projected & tentative economic conditions of the allied cost shall give a precise idea of the situation to select. However, in general CPPC is the most risky option for the buyer with a simple reason of "Percentage on Base", i.e. higher the base, highest the percentage.
Answer: BExplanation: Cost-plus contracts are ones where the seller bills the buyer for any costs incurred on the project. A "Cost plus percentage of costs" (CPPC) contract is one where the seller agrees to pay a percentage of the total costs of the project. This is the riskiest kind of contract for the buyer,because if the costs get really high then they're passed along to the buyer - and the seller doesn't have any incentive to keep them down!
CPPC has more risk to buyer.
B-Cost plus percentage of cost CPPC.
In this type of contract nothing will motivate the contractor to keep the cost low.
A. Cost plus fixed fee (CPFF)
