What does the Contractor risk if the City does not approve services?

The rationale behind why loss of payment for services rendered is the correct answer lies in the nature of contracts and the service approval process by the City. When a contractor provides services under an agreement with the City, payment is typically contingent upon the City’s acceptance and approval of those services. If the City does not approve the services, this may lead to a situation where the contractor does not receive compensation for the work performed, regardless of any effort or resources expended.

In this scenario, the contractor assumes the risk that if their services are not approved, they may not receive payment, thus highlighting the importance of understanding the contract's stipulations about approval processes. By ensuring that services meet the required standards and criteria before submission for approval, contractors can mitigate the risk of non-payment.

While the other options present different risks, they do not directly tie to the immediate consequence of non-approval by the City regarding payment for services. Understanding this aspect is crucial for contractors working within this context, as it emphasizes the importance of compliance with the City’s standards to secure fair compensation for their efforts.