What type of reimbursement is most common for projects procured with a low bid or best value?

Lump sum reimbursement is the most common method for projects procured with a low bid or best value because this pricing structure provides a fixed total price for the project before it begins. This approach ensures that the contractor bears the risk of cost overruns, as they are incentivized to complete the project within budget to maximize their profit.

In the context of competitive bidding, offering a lump sum allows clients to easily compare quotes from different contractors, making it an efficient way to select the best value. This contrasts sharply with hourly rate or cost-plus-fee arrangements, where costs can escalate, making it difficult to predict the final project expense. Additionally, a unit price contract, while often used in specific situations (such as construction of roads), can also lead to unpredictable total project costs as it depends on quantities that may vary during execution. Hence, the lump sum model aligns well with the principles of low bid procurement by providing certainty and accountability for both the contractor and the client.