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In a fixed priced contract, the contractor accepts all the risks and benefits associated with cost. Should there be cost over-runs, for example, the contractor is contractually bound to complete the contract without additional funds. Conversely, should the contractor complete the job at a lower cost, the customer is contractually bound to still pay the full amount for the work.
Wiki User
∙ 14y ago
Wiki User
∙ 14y agoFixed price contracts are easy to break. For example, a 'fixed price' energy bill at £25 a month can be altered without breaking the law to a suitable (higher) price because you are using a higher amount of energy than predicted.
Wiki User
∙ 13y agoMaking more profits compared to other supply contracts.
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When is the working capital adjustment used while calculating profitfee?
all fixed price contracts with progress payments
What are cost-reimbursement contracts?
In cost-reimbursement contracts, builders were paid for justifiable costs incurred during the project, while fixed-price contracts required builders to absorb any cost overruns themselves.
What is contractual risk?
1. Probability of loss arising from the buyer's reneging on the contract, as opposed to the buyer's inability to pay. 2. Probability of loss arising from failure in contractperformance. Vendors have the highest risk in fixed price contracts and least in the cost type contracts.
How can one lower the price of their gas bills?
There are a lot of ways in order for one to lower the price of their gas bills. One of the common ways is signing a fixed price contract with the suppliers.
Who fixed the price in the market?
As far as i know the price is being fixed by the government only
What are some of the standard characteristics of the business of corn futures trading?
Corn futures are contracts where the buyer agrees to have delivered to them from the seller a specific amount of corn at a set price at a date in the future.
Is a quoted price a fixed price?
is a quoted price afixed price
How much did he first desktop computer cost?
The first computers had no fixed selling price. They were usually built on cost plus fixed fee contracts, because the people making them could not guess at final cost to build them. For example the ENIAC was estimated at $50,000 when the Army signed the cost plus contract. The Army eventually payed a bit more than $500,000. The UNIVAC I original fixed price contracts were for $250,000 but when the machine went into production its actual price was $2,500,000. Remington Rand lost lots of money on the first two UNIVAC's sold as the company had to pay the difference between cost to build and what the customer payed!
Which of the following is true about fixed-price contracts?
a.Employer billed automatically each weekb.How much to pay and when to pay is at the employer's discretionc.Hours worked will show on your profiled.Time-tracking requirede.Qualify for the oDesk payment guarantee
What are common characteristics of Shearling Outerwear?
Some characteristics of shearling outwear is the fur. The fur is what makes these types of outfits unique. The price of this outwear can range from $15-$800.
What does fixed price mean?
the price wont change,
What is a slang term for a meal at fixed price?
It is not slang, it's "prix fixes", French for fixed price.
