DEF, Inc. decides to assume the risk of electrical issues, which means they will deduct the portion of the contractor's risk fund allocated for electrical issues from the total project bid. Supplier X's total bid is $1 million, including $100,000 for the contractor's risk fund (half for building issues and half for electrical issues). Since DEF assumes the electrical risk, the contract price should be reduced by the $50,000 allocated for electrical issues:

Contract price=$1,000,000−$50,000=$950,000\text{Contract price} = \$1,000,000 - \$50,000 = \$950,000Contract price=$1,000,000−$50,000=$950,000

However, the question might have a typo. Correcting it for clarity:

The general risk fund of $30,000 mentioned is part of the $1.2 million budget and doesn't affect the contractor's bid directly. Therefore, the contract price paid to Supplier X should indeed be:

$1,000,000−$50,000=$950,000\$1,000,000 - \$50,000 = \$950,000$1,000,000−$50,000=$950,000

Thus, the correct contract price, assuming no other deductions, is $950,000.