High School

Compensation for IPD projects is typically composed of three components. Which one of the following is NOT one of those compensation components?

A. Fixed fee
B. Cost of goods sold
C. Incentive fee
D. Shared savings bonus

Answer :

Final answer:

Cost of goods sold is not a compensation component for Integrated Project Delivery (IPD) projects, which typically comprise a fixed fee, an incentive fee, and a shared savings bonus to promote collaboration and efficiency among all project parties. correct answer is option b. Cost of goods sold

Explanation:

The question asks which one of the following is not a component of compensation for Integrated Project Delivery (IPD) projects: a) Fixed fee, b) Cost of goods sold, c) Incentive fee, d) Shared savings bonus. Among these options, Cost of goods sold is not a component of compensation for IPD projects. IPD compensation typically includes a fixed fee, which is a set amount agreed upon at the start; an incentive fee, aimed at motivating performance to meet or exceed project goals; and a shared savings bonus, which rewards parties for coming in under budget. These components are designed to align the interests of all parties involved in the project, encouraging collaboration, efficiency, and cost-effectiveness.