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A. A reimbursement of allowable cost of services performed plus an agreed upon percentage of the estimated cost as profit.B. A reimbursement of allowable costs plus a fixed fee which is paid proportionately as the contract progresses.C. The supplier with a fixed price for a delivered performance plus a predetermined fee for superior performance.D. None of the above.
Option-A is best choice. The allowable cost means there is reasonable control of buyer and then a agreed upon/fixed fee as profit. Here the risk is mostly shared by the contractor.
Option (A). A reimbursement of allowable cost of services performed plus an agreed upon percentage of the estimated cost as profit
Option-A
In cost type contracts, the performance risk is borne mostly by the buyer, not the seller.
A. is my option,
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pay a fee that rises as the contractor's cost rise. Because this contract type provides no incentive for the contractor to control costs it is rarely utilized.
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Thanks for the invite.
I go with option D - None of the above.
In CPPC type contract, buyer pays all costs plus a percentage of costs as a fee.
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