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The project is then invoiced to the customer based on the actual costs incurred plus the agreed margin. It is essentially the same as what is known (especially in the U.S.) as a cost-plus contract. This contract form is popular to ensure that a competitive price is obtained, for instance in cases where tender competitions are impractical.
Cost plus a fixed-fee (CPFF) contracts pay costs plus a pre-determined fee that was agreed upon at the time of contract formation. Cost-plus-incentive fee ( CPIF ) contracts have a larger fee awarded for contracts which meet or exceed certain performance goals, for example being on schedule and any cost savings.
According to the PMBOK (7th edition) by the Project Management Institute (PMI), Fixed Price Economic Price Adjustment Contract (FPEPA) is a "fixed-price contract, but with a special provision allowing for predefined final adjustments to the contract price due to changed conditions, such as inflation changes, or cost increases (or decrease) for special commodities".
On Tuesday, Pennsylvania Gov. Josh Shapiro said PJM will support a new price cap meant to lower the cost of the power grid in the coming year after a recent auction forecasted an 800% increase.
In cost plus fixed fee, the owner pays the contractor an agreed amount over and above the documented cost of work. [10] This is a negotiated type of contract where actual and direct costs are paid for and additional fee is given for overhead and profit is normally negotiated among parties.
The states settled their Medicaid lawsuits against the tobacco industry for recovery of their tobacco-related health-care costs. [ 1 ] : 25 In exchange, the companies agreed to curtail or cease certain tobacco marketing practices , as well as to pay, in perpetuity, various annual payments to the states to compensate them for some of the medical ...
'They’re going to put a lien on my house.' This 77-year-old New Yorker agreed to a ‘low-cost solar deal’ when fixing her roof — but the bill was a stunning $100,000, a sum she can’t afford.
A contract price is a monetary figure that has been agreed upon in a contract, to be received in exchange for goods or services. [1] Contract law. Common law