Doubt related to Cost Plus Fixed Fee

Hello

I was reading Rita Book - Procurement Management chapter and found that for Cost Plus Fixed Fee it is mentioned below.

Cost Plus Fixed Fee Contract DONOT LIMIT FEE INCREASES and fee is paid out on continous basis during the life of the project (Q 13 explanation).

Cost Plus Fixed Fee Contract  LIMITS FEE for large projects with limited scope definition. (Q 25 explanation).

Please help me understand these two comments.

Thanks 

 

 

 

 

 

 

 

 

admin's picture

its context specific.  CPFF contracts have Fixed fee and that is less risk to buyer as fee is limited.