Cost-Plus-Fixed-Fee Contract. The Subconsultant is being hired to perform professional services in connection with the Project as set forth herein. In consideration for Title I services performed, the Consultant will reimburse the Subconsultant for allowable direct and indirect costs, as defined herein, and pay the Subconsultant a fixed fee. If Title II services are to be performed, the Consultant will reimburse the Subconsultant for allowable direct costs and also pay the Subconsultant an amount determined by multiplying the salary rate of the individual(s) performing the Title II services, as shown on the Schedule of Salary Ranges, by the Title II Multiplier.
Cost-Plus-Fixed-Fee Contract. Cost Plus fixed fee contract is desirable when the scope and nature of the work can atleast be broadly defined. The amount of fee is determined as a plump sum from a consideration of the scope of work, its approximate cost, nature of work, estimated time of construction, manpower and equipment requirements etc. In order to negotiate such a type of contract, it is essential that the scope and some general details of the work are defined. The contractor in this type of contract is selected on the basis of merit rather than the fee alone. In case of cost plus percentage contract, the contractor has a tendency to increase his profit by increasing the cost of work. But this drawback is overcome in cost plus fixed fee contract because here the contractor’s fee is fixed and does not fluctuate with actual cost of work. Once this fee is fixed, the contractor cannot increase the cost of work. Suitability
Cost-Plus-Fixed-Fee Contract. The Consultant is being hired to perform professional engineering services in connection with the Project as set forth herein. In consideration for Title I services performed, the Owner will reimburse the Consultant for allowable direct and indirect costs, as defined herein, and pay the Consultant a fixed fee. If Title II services are to be performed, the Owner will reimburse the Consultant for allowable direct costs and also pay the Consultant an amount determined by multiplying the salary rate of the individual(s) performing the Title II services, as shown on the Schedule of Salary Ranges, by the Title II Multiplier.
Cost-Plus-Fixed-Fee Contract. (i) If the Commissioner determines that there is any identity of interest (xxxxx- cial or otherwise) between the bor- rower, its officers, directors or stock- holders and the contractor, the form of contract shall provide for payment of the actual cost of construction not to exceed an upset price and may provide for payment of a fixed fee not exceed- ing a reasonable allowance as estab- lished by the Commissioner in accord- ance with customary practices in the area.
Cost-Plus-Fixed-Fee Contract. This type of contract involves fixed lump-sum-payment to the contractor over and above the actual cost of the work. This fixed fee shall cover as in the case of cost plus percentage rate contract. The advantage of this contract is that contractor tries to complete the work speedily in order to earn his fee as soon as possible. The disadvantage shall be that contractor shall try to complete the work as early as possible even by purchasing materials at higher rate and engaging labour at higher charges. This increases the cost of construction. Secondly the work being speedily done the quality of work is likely to suffer.
Cost-Plus-Fixed-Fee Contract it is a specific type of contract wherein the contractor is paid for the normal expenses for a project, plus an additional fixed fee for their services. These allow the contractor to collect a profit on the project, and they encourage economic production in various industries.
