The cost in cost reimbursable contract is…?

The cost in cost reimbursable contract is…?
A . Actual cost
B. Variable cost
C. Fixed cost
D. Profit

View Answer

Answer: A

Explanation:

A cost reimbursable contract (sometimes called a cost plus contract) is one in which the contractor is reimbursed the actual costs they incur in carrying out the works, plus an additional fee. Option E of the NEC3 Engineering and Construction Contract (ECC) is an example of a cost reimbursable contract.

Reference:

– CIPS study guide page 176-179

– Cost reimbursable contract

LO 3, AC 3.3