PMP Exam Prep Question of the Week

Who has the risk in a fixed-price contract?

  1. Buyer
  2. Seller
  3. Sponsor
  4. Customer

 

The correct answer is 2.

Fixed price contracts place the risk on the seller who has accepted a particular amount of consideration in exchange for the seller’s services, goods, or results. The seller risks incurring costs greater than planned and thereby experiencing reduced or eliminated profit.

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