CSI distinguishes between project delivery methods (e.g., Design-Bid-Build, Construction Management at Risk, Design-Build) and methods of compensation / basis of payment for the construction contract.
Lump sum, unit price, and cost-plus-fee are classic examples of basis of payment (sometimes called pricing or compensation methods):
Lump sum – A single fixed price for the entire work, based on the contract documents.
Unit price – Payment based on measured quantities of work items at agreed unit rates.
Cost-plus-fee – The owner reimburses actual costs of the work plus a fee (which may be fixed or a percentage).
These are not delivery methods or bonding systems; they describe how the contractor is paid under the construction contract, so Option C is correct.
Why the others are incorrect:
A. Delivery method – Delivery methods describe the organizational and contractual structure (who holds contracts with whom and when they are engaged), not how payment is calculated.
B. Bonding system – Bonds (bid, performance, payment) are surety instruments, not pricing arrangements.
D. Cost estimate – An estimate is a forecast of probable cost, not the contractual method of payment.
CSI-aligned references (no URLs):
CSI Project Delivery Practice Guide – distinctions between delivery methods and compensation methods.
CSI CDT Body of Knowledge – lump sum, unit price, and cost-plus as bases of payment within procurement and contracting.
