Chapter 1-CCIFP
questions and answers
2025
Fixed Price Contract - answer AKA - lump sum. Contract is
performed for a fixed dollar amount. Reduces owner's risk.
Contractor is subject to performance and productivity risk.
How can an owner gain protection against nonperformance of a
contract? - answer Payment and performance bonds
What is retention? - answer Percentage that the owner withholds
from the billing to incentive the contractor to complete the contract.
Paid to the contractor at completion
What is front end loading? - answer Contractor will strive to
allocate the maximum realistic cost to trades that can be scheduled
and completed first. This can increase cash flows.
What is a cost-Plus-Fee Contract? - answer The owner agrees to
reimburse the contractor for the cost incurred and pay the
contractor an established fee. It can be fixed or variable. Owners
bears substantial risk while the contractor bears very little
When is it common to use a cost-plus-fee contract? - answer When
estimates are impossible due to sit conditions. common in
renovations
questions and answers
2025
Fixed Price Contract - answer AKA - lump sum. Contract is
performed for a fixed dollar amount. Reduces owner's risk.
Contractor is subject to performance and productivity risk.
How can an owner gain protection against nonperformance of a
contract? - answer Payment and performance bonds
What is retention? - answer Percentage that the owner withholds
from the billing to incentive the contractor to complete the contract.
Paid to the contractor at completion
What is front end loading? - answer Contractor will strive to
allocate the maximum realistic cost to trades that can be scheduled
and completed first. This can increase cash flows.
What is a cost-Plus-Fee Contract? - answer The owner agrees to
reimburse the contractor for the cost incurred and pay the
contractor an established fee. It can be fixed or variable. Owners
bears substantial risk while the contractor bears very little
When is it common to use a cost-plus-fee contract? - answer When
estimates are impossible due to sit conditions. common in
renovations
