CPIF
Submitted by vijayavadrevu on Sun, 06/02/2013 - 18:27
Forums:
A project is contracted as a Cost-Plus-Incentive-Fee (CPIF) type of contract. The project is negotiated such that if the final costs are less than expected costs, the sharing formula for cost savings is 75:25. The targeted cost is US$ 100,000 with an 8% incentive fee. If the project comes in at US$ 80,000, what would be the cost of the total contract?
