Question 12

Traditional price is not a recognized type of common construction contract.

Among the various types of common construction contracts, "traditional price" does not represent a standard category. Instead, it may refer to outdated or less formalized pricing methods that are not widely used in contemporary construction practices.

A) fixed price.

The fixed price contract is a widely recognized type of construction agreement where a contractor agrees to complete the project for a set price. This method is beneficial for clients as it provides a clear budget and risk management for cost overruns falls on the contractor.

B) unit price.

Unit price contracts are another common type of construction contract where the project is priced based on the units of work performed. This is often used in projects with unpredictable quantities, allowing for flexibility and adjustment in pricing as the project progresses.

C) cost plus.

Cost plus contracts involve the contractor being reimbursed for their actual costs plus an additional fee or percentage for profit. This type of contract is beneficial when project scope is uncertain, but it can lead to higher total costs for the client if not closely monitored.

D) traditional price.

Traditional price is not a recognized category of construction contracts. It lacks standard definitions and practices compared to the established types like fixed price, unit price, and cost plus contracts, making it an incorrect choice in this context.

Conclusion

In summary, "traditional price" does not align with the established types of construction contracts, which include fixed price, unit price, and cost plus. Each of these recognized types has specific characteristics and applications in construction, while "traditional price" is vague and not commonly utilized in modern contracting practices. Thus, it is the correct answer as the exception among the listed options.