Question: You are managing a construction project using a firm fixed price (FFP) contract. The contract is structured so that your company will be paid a

You are managing a construction project using a firm fixed price (FFP) contract. The contract is structured so that your company will be paid a fee of $85,000 to complete the work.

There was a $15,000 overhead cost that your company had to cover. It’s now three months into the project, and your costs have just exceeded $70,000. The project has now consumed the entire fee, and your company will now be forced to pay for all costs on the project from this point forward. What’s the BEST way to describe this situation?

A. The project manager has overspent the budget B. The project is overdrawn C. The project has reached the point of total assumption D. The project has ceased to be a profit center for the company

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