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Scenario: You are an experienced construction contractor to the local municipality. You are always very busy working on various development projects for the city, one of which currently is to build a small park. Based on your knowledge of the city's specifications for the proposed park and your experience and expert knowledge, you are confident that:
Scenario 1: It will take you 400 hours to complete the work and the costs for materials will be $100,000. Which of the following contracts gives you the greatest financial benefit per hour of work?
A. Fixed price contract: Build the park in exchange for payment of $250,000 to cover all costs, overhead, and your profit.
B. Cost-Reimbursable contract: All agreed-upon costs will be reimbursed and there will be a $100,000 completion award.
C. Time-and-materials contract: All agreed-upon costs for materials will be reimbursed to you and you will receive $200/hour.
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