What amount should the contractor be paid?

The project manager of a pipeline project hires a construction contractor using a cost plus fixed fee (CPFF) contract, the contractor provides the project manager with an estimate of US$50,000, and a fixed-fee amount of US$5,000. When the pipeline is completed, the construction cost is US$60,000.

What amount should the contractor be paid?
A . US$65,000
B . US$60,000
C . US$55,000
D . US$50,000

View Answer

Answer: A