Price and performance are ______ in this context.

Price and performance are ______ in this context.

• A. Flexible
• B. Variable
• C. Dynamic
• D. Fixed

Answer: (D)

In a fixed-price design-build setup, price and performance are predetermined and held constant. The owner defines the total price in the contract and specifies the required performance criteria, while the design-builder must meet those requirements within that fixed price. This arrangement gives cost certainty to the owner and motivates the design-builder to design and construct efficiently to achieve the performance targets without exceeding the set price. The other options don’t fit because they imply variability or changeability. Flexible would blur cost certainty, variable would suggest costs or outcomes can shift with little negotiation, and dynamic implies ongoing, evolving changes. In a lump-sum design-build context, those aspects are fixed, with adjustments handled only through formal change orders if scope or requirements legitimately change.

In a fixed-price design-build setup, price and performance are predetermined and held constant. The owner defines the total price in the contract and specifies the required performance criteria, while the design-builder must meet those requirements within that fixed price. This arrangement gives cost certainty to the owner and motivates the design-builder to design and construct efficiently to achieve the performance targets without exceeding the set price.

The other options don’t fit because they imply variability or changeability. Flexible would blur cost certainty, variable would suggest costs or outcomes can shift with little negotiation, and dynamic implies ongoing, evolving changes. In a lump-sum design-build context, those aspects are fixed, with adjustments handled only through formal change orders if scope or requirements legitimately change.