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Types of Contract Payments Quiz
10 Questions
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Types of Contract Payments Quiz

Created by
@BetterBlessing

Questions and Answers

In a Fixed Price or Lump Sum contract, what is the biggest risk carried by the contractor?

  • Competent contractors might not bid due to high-risk contracts
  • Contractor handles most of the risk (correct)
  • Changes and change orders can be very expensive
  • Contractor aims to reduce cost to maximize profit

    • What is the advantage of a Cost Plus Fixed Percentage contract for the owner?

  • Final price is known
  • Easy to arrange funds
  • Contractor aims to finish the project ASAP
  • Maximum flexibility for owner with change orders (correct)

    • In what scenario is a Cost Plus Fixed Percentage contract typically used?

  • When price can be determined in another way
  • When final price is known
  • For urgency (correct)
  • When competent contractors might not bid due to high-risk contracts

    • What is the main disadvantage of a Fixed Price or Lump Sum contract?

    <p>Changes &amp; change orders can be very expensive</p> Signup and view all the answers

    Under a Cost Plus Percentage contract, who bears the actual costs?

    <p>Owner</p> Signup and view all the answers

    Price charged to owner

    <p>OMR 17,000</p> Signup and view all the answers

    Contractor profit

    <p>OMR 1,500</p> Signup and view all the answers

    Cost Plus Fixed %

    <p>Cost Plus Fixed Percentage</p> Signup and view all the answers

    Cost Plus Fixed Fee

    <p>Cost Plus Fixed Percentage</p> Signup and view all the answers

    Fixed Price /Lump Sum

    <p>Fixed Price / Lump Sum</p> Signup and view all the answers

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