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Lana71 [14]
3 years ago
10

Mister Plow has contracted to perform snow removal services for the city of Springfield. Record snowfall has more than doubled t

he time he will spend on the streets and the resources this job will require.​ Unfortunately, Mister Plow cannot come back to the city for more​ money, because the service contract is A. a final contract. B. a​ fixed-price contract. C. a​ cost-plus contract. D. a​ last-bid contract.
Business
1 answer:
Marina86 [1]3 years ago
3 0

Answer:

B. a fixed-price contract.

Explanation:

"A fixed price contract places minimum administrative burden on the contracting parties, but subjects the contractor to the maximum risk arising from full responsibility for all cost escalations. Also called firm price contract."

Mr. Plow couldn't come back to Springfield because he took full responsability for all cost escalations.

Reference: WebFinance Inc. “What Is Fixed Price Contract? Definition and Meaning.” BusinessDictionary.com, 2019

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