+0
Clients are much less likely to agree to a fixed profit type of cost-plus contract when it is understood that under certain conditions the project will be scuttled than they are when there is no such understanding.

what does it mean " the project will be scuttled ?

than

they are when there is no such understanding." ?

What is " they are " referring to ? certain condtition ?

Thanks
+0
You should post the links and the full context:

---------
http://exam.studa.com/2005/10-24/092610610-11.html

23. Construction contractors working on the cutting edge of technology
nearly always work on a "cost-plus" basis only. One kind of cost-plus
contract stipulates the contractor's profit as a fixed percentage of
the contractor's costs; the other kind stipulates a fixed amount of
profit over and above costs. Under the first kind of contract, higher
costs yield higher profits for the contractor, so this is where one
might expect final costs in excess of original cost overruns are
actually more common if the contract is of the fixed-profit kind.

Which one of the following,if true, most helps to resolve the apparent
paradox in the situation described above?

A) Clients are much less likely to agree to a fixed-profit type of
cost-plus contract when it is understood that under certain
conditions the project will be scuttled than they are when there is
no such understanding.

B) ....
-----------
Comments  
scuttle
you should find words yourself, on a good dictionary, such as:
http://www.m-w.com

the meaning here is
scuttle=scrap, abandon
thus
... under certain conditions the project will be abandonned .....

they are refers to the clients