Engineering Board Exam Reviewer · ECE · hard
Under a cost-plus-fixed-fee contract with a fixed fee of ₱150,000, the estimated cost was ₱1,500,000 but the actual cost was ₱1,800,000. What does the owner pay?
- ₱1,650,000.00
- ₱1,980,000.00
- ₱1,950,000.00
- ₱1,800,000.00
Answer
C. ₱1,950,000.00
Solution
Owner pays actual cost plus the fixed fee: ₱1,800,000 + ₱150,000 = ₱1,950,000. The fee does not increase with cost.
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