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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:

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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
10 days 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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Kiley
12 days 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
14 days 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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Allene
18 days 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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Audria
1 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
3 days ago
Yes, the contractor bears all the performance risk in a fixed price contract.
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Jeannetta
21 days ago
That's correct, the contractor takes on the risk in a fixed price contract.
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Yun
27 days ago
I agree, in a fixed price contract the contractor assumes all the performance risk.
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Celeste
2 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
2 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
2 months ago
I think the answer is B) Contractor assumes all the performance risk.
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