This contract is suitable when the type of work is predictable and the requirements are well defined and not likely to change. It has more risk to the seller. Sometimes unexpected costs occur during the course of the project. Since the price is fixed on the contract, the seller is responsible for the unexpected additional expenses. The risk to the buyer in the contract is, if the seller won’t’

deliver the work. In one of the below contract type the seller may have impacted due to sudden change in requirement or project scope, which one?

A. Cost reimbursable contract.

B. Fixed price contract.

C. Time and materials contract.

D. Cost plus incentive fees contract.