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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Devorah

3 months ago

Well, at least the contractor won't have to worry about going over budget. That's a silver lining, right?

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Danica

1 months ago

C) Contractor is paid for actual costs

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Sheron

2 months ago

B) Contactor assumes all the performance risk

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Alexia

2 months ago

A) Contractor has no risk in the project

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Kiley

3 months ago

C? Really? That's just plain wrong. In a fixed price contract, the contractor is paid a set amount, not actual costs.

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Pok

3 months ago

D seems a bit too extreme. The owner has some risk, but not all of it. I'm going with B.

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Karl

1 months ago

I'm also going with B. It seems like the most reasonable option for a fixed price contract.

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Mattie

2 months ago

Yeah, B seems like the most balanced choice. The contractor should have some risk in the project.

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Christiane

2 months ago

I think B is the best option too. It's important for the contractor to have some stake in the project.

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Lorrie

2 months ago

I agree, B makes more sense. The contractor should assume some performance risk.

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Allene

3 months ago

I was going to choose A, but I guess that wouldn't make much sense since the contractor is the one taking on the risk.

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Christiane

2 months ago

C) Contractor is paid for actual costs

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Lashaun

2 months ago

That's correct, the contractor takes on the risk in a fixed price contract.

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Noel

2 months ago

B) Contactor assumes all the performance risk

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Audria

3 months ago

I think B is the correct answer. In a fixed price contract, the contractor assumes all the performance risk.

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Barrett

2 months ago

Yes, the contractor bears all the performance risk in a fixed price contract.

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Jeannetta

3 months ago

That's correct, the contractor takes on the risk in a fixed price contract.

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Yun

3 months ago

I agree, in a fixed price contract the contractor assumes all the performance risk.

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Celeste

4 months 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

4 months 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

4 months ago

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

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