Question

question 48
select the description that best matches the compensation method known as: hourly with guaranteed maximum price.
a based on a fixed amount for each hour of work expended on the project.
b based on a fixed amount for each hour expended on the project, except there is price given for a maximum number of hours anticipated by the architect/engineer to be expended.
c based on a single, fixed stipulated amount for a predetermined and detailed scope of services.
d all of the above.

Explanation:

Hourly with Guaranteed Maximum Price means there is a fixed - rate per hour, but also a cap on the total price based on a maximum number of anticipated hours. Option A only mentions the fixed - rate per hour. Option C is a description of a fixed - fee for a scope of services, not the hourly with guaranteed maximum. Option B correctly describes the method where there is a fixed amount per hour and a price for a maximum number of hours.

Answer:

B. Based on a fixed amount for each hour expended on the project, except there is price given for a maximum number of hours anticipated by the architect/engineer to be expended.