Utah Contractor Practice Exam 2025 – Comprehensive Prep Guide

Question: 1 / 770

In a cost-incentive contract, the most common share of savings awarded to a contractor is ____ percent.

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50

In a cost-incentive contract, a predefined percentage of any cost savings achieved during the contract period is shared between the contractor and the client. The most common share of savings awarded to the contractor is typically around 50 percent. This arrangement encourages the contractor to manage project costs efficiently while also aligning their interests with the client. By having a significant financial incentive to reduce costs, the contractor is motivated to find ways to complete the project under budget.

A 50 percent share is often seen as a balanced approach, providing adequate incentive for the contractor while also allowing the client to benefit from savings. This percentage encourages collaboration and transparency between both parties in a way that promotes mutual benefits throughout the project's duration.

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