What is the highest risk for the buyer
Cost plus fix fee (CPFF)
Cost plus percentage of costs (CPPC)
Mon, 03/02/2015 - 08:32
CPCC is highest risk as if the cost increases, the buyer will have to pay % of cost extra. Say you started with $100 project + 10% cost. Your total would be $110. If the cost increases to $200 you will end up paying $220.
Whereas if you were in CPFF contract you would have paid only $210
Mon, 03/02/2015 - 21:04
thanks that make sens !
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