Cost plus Fee Contracts
You have been hired as project manager in the development of a new robot. You are now reviewing the contract of one seller. He will share the extra costs with the buyer (50% – 50%) if the final cost is greater than the original estimated costs. Which type of contract is the one signed?
A. Cost plus fixed fee (CPFF).
B. Cost plus incentive fee (CPIF).
C. Cost plus award fee (CPAF).
D. Cost plus extra fee (CPEF).