Contract Type

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nazrulq
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Contract Type

Postby nazrulq Sat Nov 25, 2017 11:08 pm

Q. Project Manage wanted to award some renovation contract to a preferred source, the contractor said the Total Cost of the contract $ 20000 . Cost of material and others is $16000 and the fees will be $4000.
What type of Contract it is?

1. Fixed Price
2. Time and Material Contract
3.Cost plus fixed fee
4.Cost plus incentive fee.

Can Manish share your clarify this!
manishpn
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Re: Contract Type

Postby manishpn Sun Nov 26, 2017 7:54 pm

nazrulq wrote:Q. Project Manage wanted to award some renovation contract to a preferred source, the contractor said the Total Cost of the contract $ 20000 . Cost of material and others is $16000 and the fees will be $4000.
What type of Contract it is?

1. Fixed Price
2. Time and Material Contract
3.Cost plus fixed fee
4.Cost plus incentive fee.

Can Manish share your clarify this!

Total Cost of the contract $ 20000 - fixed price
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Manish P
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sukumartupakula
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Joined: Thu Oct 26, 2017 1:02 am

Re: Contract Type

Postby sukumartupakula Fri Dec 01, 2017 10:01 am

I believe it is a "Cost plus fixed fee" because in a fixed price the buyer don't know the profit/fee, here it is mentioned that material cost is 16000 and fee is 4000.
rahul.kanugo
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Re: Contract Type

Postby rahul.kanugo Fri Dec 01, 2017 12:55 pm

for first instance i have also opted for cost +fixed fee...............but must agree with Manish because Cost reimbursement must be variable and must not mentioned as fixed . if cost is already fixed in the contract then there is no need of Cost reimbursement.

Experts can further eleborate

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