Question

Contract types are often associated with two broad categories: fixed-price contracts and cost-reimbursable contracts. Briefly identify the factors to consider when determining which type is most appropriate for a planned contract.

Answer 1

The elements determining the sort of an agreement relies upon the accompanying variable

Dubious about the extent of the activity:

If we are questionable how the activity is going to get down to business in future, we go with the cost reimbursable agreement. On the off chance that the degree Is all around characterized, at that point we pick fixed value contracts

High inconstancy in parts evaluating:

In the event that we have a segment in the whole agreement whose cost fluctuate radically and can prompt potential store network emergency, it is encouraged to go with an expense – reimbursable agreement.

Fixed contracts are utilized where the items are off oneself, have a clear plan or execution with suitable evaluating. Though cost reimbursable contracts are made when the prerequisite is indistinct, ultimate objective can change, the items are a confounded and one which needs visit redesign and so on.

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