3. Construction Contracts

Contract Types — Quiz

Test your understanding of contract types with 5 practice questions.

Practice Questions

Question 1

Which contract type is most appropriate for projects where the scope of work is highly defined and the owner desires a single, predictable cost?

Question 2

Under which contract type does the owner typically assume the greatest financial risk due to potential cost overruns?

Question 3

A project involves a significant amount of specialized work where the quality of materials and labor is paramount, and the owner wants direct involvement in selecting these resources. Which contract type would best facilitate this level of owner control?

Question 4

Which contract type is often used for projects with an uncertain scope, but where the owner wants to establish a ceiling on the total project cost?

Question 5

In a Time-and-Materials (T&M) contract, how is the contractor's profit typically accounted for?