Contract Types
Submitted by chullan88 on Sat, 06/14/2014 - 11:25
Rita's book mentions the following contract types as per situation.Can anyone explain?
1.Rebuild a bridge as soon as possible after a storm - FPIF
2.You want to buy expertise in determining what needs to be done - Cost Reimbursible
What is the most significant difference between Incentive Fee and Award Fee
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Sun, 06/15/2014 - 09:00
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Incentive will always apply
Incentive will always apply when you have met the target, Award is based on comparative performance of vendors.
FPIF is required since the time is very short so Incentive must be given for early completion. Scope is fixed and fully known so it will be FP.
In second case you are not sure of what the requirement is so you will go for CR contract.