What is a key benefit of having a guaranteed maximum price plus bonus contract?

A guaranteed maximum price plus bonus contract provides a framework where the contractor is incentivized to keep costs below a specified limit while still achieving project goals within the given scope. The ability to earn a bonus if they can deliver under budget encourages efficiency and innovation in cost-saving measures. This system aligns the interests of both the owner and the contractor, as the contractor benefits from finding ways to reduce costs while maintaining quality and performance.

The other choices present potential advantages that may not specifically address the unique structure of this type of contract. For instance, while flexibility in project design alterations can be beneficial, it is not inherently a feature of a guaranteed maximum price contract. Similarly, reducing overall fees may happen in certain scenarios, but the primary intention and benefit of the incentive structure relate to cost reductions rather than fee simplification. Simplified payment processes might be an advantage in other contract types but is not a direct benefit linked to the concept of maximizing efficiency and cost savings inherent in the guaranteed maximum price plus bonus arrangement.