In a fixed price contract the:

In a fixed price contract the:
A . Contractor has no risk in the project
B . Contactor assumes all the performance risk
C . Contractor is paid for actual costs
D . Owner has all the risk

View Answer

Answer: B

Explanation:

In a fixed price contract, the contractor agrees to deliver the project at a set price, regardless of the actual costs incurred. This means that the contractor assumes all the performance risk, as any cost overruns must be absorbed by the contractor. If the project costs more than the fixed price agreed upon, the contractor cannot charge the owner more. Conversely, if the project is completed under budget, the contractor benefits by retaining the difference.