Which of the following is NOT a General Contractor Reimbursement Method?

The competitive bidding process is fundamentally different from the reimbursement methods typically used for general contractors. In competitive bidding, contractors submit fixed-price proposals to undertake a project, and the owner selects the contractor based on these bids. This method emphasizes cost determination of the project rather than how costs incurred during project execution will be reimbursed.

On the other hand, the other three options—Cost Plus a Fixed Fee, Lump Sum, and Time and Materials—are all types of reimbursement methods utilized by general contractors in various project scenarios. Cost Plus a Fixed Fee entails reimbursement for construction costs plus an agreed-upon fixed fee for profit. Lump Sum is a set price for the entire project, while Time and Materials allows payment based on the actual time spent and materials used, typically calculated at predetermined rates. Each of these methods directly relates to how payments are structured for contractors after project tasks have been completed. Therefore, competitive bidding does not align with the reimbursement methodology and is correctly identified as not being a reimbursement method utilized by general contractors.