Exam IIA-CIA-Part2 All QuestionsBrowse all questions from this exam
Question 44

What is the most important risk in determining the validity of construction delay claims?

    Correct Answer: B

    The most important risk in determining the validity of construction delay claims is that contractor claims may include costs considered in the fixed-price portion of the work. In fixed-price contracts, the contractor agrees to a set price for the completed work. Therefore, any additional costs claimed for delays must be carefully scrutinized to ensure they are not already covered within the agreed fixed price. Overlapping or double-dipping of costs into the delay claims can lead to inflated or unjustified compensation requests.

Discussion
JamalAli

This is about contract types. In general delays are to be paid and in another case it should be fixed rate then payment for delays is not reasonable. So, there could be fixious or fraud payment.

KonradKOption: B

Can some explain why B? thanks