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Which of the following statements are FALSE regarding costreimbursable contracts?

A. cost-reimbursable contracts generally carry the highest risks to the buyer, as the total costs are uncertain B. cost-reimbursable contracts often includes incentives for meeting or exceeding project objectives C. cost-reimbursable contracts resemble fix unit agreements when the unit rates are preset by the buyer and seller D. cost-reimbursable contracts are contracts that involves payments to the seller for actual costs, plus a fee representing the sellers profit

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Question added by Mohamed El Sayed , Project Manager , Saudi Post
Date Posted: 2014/05/19
Danilo Dino
by Danilo Dino , Supply Officer II , Contract Management Division - DOH

"A" is the correct answer since the provider is paid in the agreed amount stated in the contract even if the provider has incur additonal price increase, it will not affect the contract..

souahi bouthaina
by souahi bouthaina , Procurement Engineer at MEP DEPARTMENT / مهندس مشتريات , China State Construction Engineering Corporation Algeria

A is the right answer , so the false statements are B and C

DR MD ANWAR HOSSAIN
by DR MD ANWAR HOSSAIN , Moderator , bayt.com

I think A is appropriate answer.

Umair Khurshid Shiekh
by Umair Khurshid Shiekh , Sales Executive , Fly Board adventure

cost-reimbursable contracts resemble fix unit agreements when the unit rates are preset by the buyer and seller

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