AACE International Exam CCP Topic 1 Question 18 Discussion

Actual exam question for AACE International's CCP exam

Question #: 18
Topic #: 1

[All CCP Questions]

In a fixed price contract the:

AContractor has no risk in the project

BContactor assumes all the performance risk

CContractor is paid for actual costs

DOwner has all the risk

Show Suggested Answer

Suggested Answer: C

In a fixed-price/lump-sum contract, the agreed price is fixed and generally not subject to adjustment based on fluctuations in costs, unless explicitly stated in the contract terms. Payment for adjustments in construction costs due to fluctuations in resource prices or delays is typically not allowed unless there is a specific provision for such adjustments, which is rare in fixed-price contracts. Therefore, the correct answer is C. In no situation.

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by Tresa at Feb 07, 2025, 11:55 AM

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Celeste

8 days ago

I'm not sure about that. I think the answer might be C) Contractor is paid for actual costs.

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Maxima

10 days ago

I agree with Alex. In a fixed price contract, the contractor takes on the risk of completing the project within budget.

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Alex

16 days ago

I think the answer is B) Contractor assumes all the performance risk.

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