Which of the following is NOT a characteristic of a cost-plus contract?

In a cost-plus contract, the contractor is reimbursed for their incurred costs, which include both direct costs like materials and labor and indirect costs. Additionally, the contractor typically receives a fixed fee or a percentage of the costs as profit. This means that charges are primarily based on the actual costs incurred, along with an agreed-upon fee structure.

The assertion that contractor's services are provided for a stated price is not accurate under this type of contract. Instead, the overall price can fluctuate based on the actual costs, and the contract is designed to accommodate those variations. Therefore, it is critical to understand that a cost-plus contract does not operate on a fixed price for services rendered but instead focuses on cost reimbursement plus an additional fee.

In contrast, other characteristics of a cost-plus contract highlight the need for flexibility and documentation in cost estimation, allowing for the accurate tracking and justification of all expenses incurred on the project. This adaptability is what differentiates cost-plus contracts from fixed-price contracts, where costs are predetermined and remain static throughout the duration of the project.