What is the primary responsibility of the contractor in a fixed-price contract?

In a fixed-price contract, the primary responsibility of the contractor is indeed to maintain an inspection system and provide records. This is crucial because a fixed-price contract places most of the risk on the contractor, as they agree to complete the project for a set price regardless of the actual costs incurred. To manage this risk effectively, the contractor must implement a robust inspection system to ensure that the work meets the required standards and specifications. This includes monitoring progress, conducting quality assurance checks, and maintaining comprehensive documentation of project activities and compliance with contract terms.

Having an effective inspection and record-keeping system not only ensures that the contractor delivers a product that meets or exceeds the contractual requirements but also provides a clear trail of performance that can be referenced in case of disputes or claims. This accountability is essential in fixed-price agreements, where the contractor is obligated to deliver on time and within budget, regardless of any unforeseen challenges they may face during the project.