CompTIA Project+ (PK0-005) — Question 274

Which of the following contract types in project procurement has the highest risk for the buyer?

Answer options

• A. Time and material
• B. Cost-plus
• C. Fixed-price
• D. Unit price

Correct answer: B

Explanation

The Cost-plus contract type places the highest risk on the buyer because it involves paying the contractor for their actual costs plus a fee, which can lead to unpredictable expenses. In contrast, Fixed-price contracts provide more cost certainty for the buyer, while Time and material and Unit price contracts also limit risk more effectively.