Stipulated  Sum and Cost Plus Fee Contracts

Stipulated  Sum and Cost Plus Fee Contracts

Write 5 pages and the paper must be on stipulated sum and cost plus fee contracts. Discuss the following:

1- What they are

2-Pros and Cons of both

3-On what type of projects are they appropriate

Answer Preview 

A cost-plus contract has advantages and some drawbacks which depend on the side of the transaction. For one, it is going to focus the service on quality instead of the cost which provides the client with value for money. The other thing is that it should cover all of the related expenses, again an advantage for the client. Clients are usually bombarded with extra costs on projects and the lack of would be welcomed. The risk to the contractor is also minimized in the long term.

Length: 1400 Words