The three categories into which contracts can be broadly classified are:
A. Cost-Reimbursable, Time and Material, Cost plus fixed fee
B. Fixed Price, Cost-Reimbursable and Lump Sum
C. Fixed Price, Cost-Reimbursable, Time and material.
D. Fixed Price, Time and Material, Lump Sum
A project is contracted as a Cost-Plus-Fixed-Fee (CPFF) type of contract with a fee of 10% of estimated costs. The estimated cost is US$ 50,000. If the project comes in at US$ 75,000 with no changes in project scope, what would be the total cost of the contract?
A. US$ 55,000
B. US$ 125,000
C. US$ 75,000
D. US$ 80,000