For which cost method is the market construction cost established on the signing of the Service Agreement?

The correct choice is the PPCC (Project Price Cost Calculation) method, as it specifically establishes the market construction cost at the time the Service Agreement is signed. This method involves determining a fixed price based on the expected costs and agreed-upon terms laid out in the Service Agreement. The significance of setting the market construction cost at that point is that it allows for a clearer understanding of the financial commitments involved and mitigates pricing fluctuations that can occur during the project lifecycle.

The other methods mentioned have different mechanisms for determining costs. For instance, a percentage based on actual costs would typically depend on ongoing costs incurred during the project, rather than fixing the price at the agreement stage. The Fixed Fee Calculation establishes a set fee independent of actual costs, which may not reflect the market conditions at the time of agreement. The Awarded Project Cost relates to the awarded bid amount but may not solidify the market construction cost separately from other considerations. In the context of project management and financial planning, understanding the timing of when costs are established is crucial for ensuring project viability and budget adherence.