What is the difference? Help

A contractor is working on a fixed price contract that calls for a

single, lump sum payment upon satisfactory completion of the contract.

About halfway through the contract, the contractor's project manager

informs their contract administrator that financial problems are making it

difficult for them to pay their employees and subcontractors. The

contractor asks for a partial payment for work accomplished.

Which of the following actions by the buyer is most likely to cause

problems for the project?

 

 

A. starting partial payments for work accomplished.
B. making no payments because it would violate the conditions of the contract.

C. paying for work accomplished to date.

D. negotiating a change to the payment conditions in the contract

 

here B is correct

 

A contractor is working on a fixed price contract that calls for a single, lump sum payment upon satisfactory completion of the contract. About halfway through the contract, the contractor’s project manager informs the contract administrator that financial problems are making it difficult for the contractor to pay employees and subcontractors. The contractor asks for partial payment for work accomplished. Which of the following actions by the buyer is most likely to cause problems for the projects?


a. Starting to make partial payments to the contractor
b. Making no payments to the contractor
c. Paying for work accomplished to date
d. Negotiating a change to the contract

 

 

here D is correct

 

Thx for your help and opinions...

B is the correct answer in both cases. It's the same question and same answers.


 


Non-payment is always worse than renegotiations...However, the problem is it's a lump sum payment at the end of the project. The customer has no obligation to pay anything until services are delivered. Renegotiating _could_ theoritically cost the contractor some funds, but non-payment at all could halt the project altogether and put the contractor in the position of defaulting on the contract.


Answer B is correct.

I thought the same that B is correct for both, but as these are two different online prep-exams they made me insecure...succesfully.

thanks for sharing your view

 

I was also thinking of "B" , but something clicked to my mind which put me in a dilemma. As per the contract the Fee is supposed to be paid at the end of the contract ,so without making any changes to the contract if the buyer pays to the contractor in the middle of the project , then it's a deviation which can cause some impact at the end. In the worst scenario , the seller/contractor at the end of the project can take a legal action by the help of the contract and asking the full Fee . So to me , 1st a change to the contract should be signed and then a partial payment can be made to the seller. May be option "D" a bit close to my thought..Any suggestions to this is highly appreciated..Great discussion.