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Question:

Which contract type poses a higher risk for the customers?

A Cost-reimbursable
Explaination

Cost-reimbursable contracts are a higher risk to the buyer. This is because the buyer reimburses the seller for the seller’s actual cost, plus an additional amount, and depending on the type of cost-reimbursable contract will determine whether this additional fee is b01ed. For this reason, this contract is typically used when the buyer can describe the work but not how to go about the work.