A public owner asks why the bid package is set up as one fixed price for a fully designed school addition. Which statement matches a lump-sum contract?
Correct Answer
A) The contractor agrees to complete defined scope for a fixed contract amount
A lump-sum contract sets a fixed price for defined contract work. Other choices describe cost-reimbursable, unit-price, or time-and-material arrangements.
Why This Is the Correct Answer
A lump-sum contract sets a fixed price for defined contract work. Other choices describe cost-reimbursable, unit-price, or time-and-material arrangements.
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