Which of the following is a contracting approach?

• A. QBS
• B. Project Delivery System
• C. Fixed Price
• D. Best Value

Answer: (C)

Contracting approaches specify how price and risk are handled in the agreement. A fixed price arrangement sets a lump-sum price for a defined scope, transferring most cost risk to the contractor and giving the owner price certainty. That makes it a contracting approach because it centers on a specific price form and risk allocation within the contract. The other terms describe how firms are selected or how the project is delivered, not the price structure of the contract itself: qualifications-based selection focuses on selecting a firm by credentials, best value blends price with other evaluation factors during selection, and a project delivery system refers to the overall method of delivering the project (such as design-build), not the contract’s price term.