Cost reimbursable contract

From PEaM

The Cost reimbursable contract is a type contract involving payment to the seller for the seller's actual costs, plus a fee typically representing seller's profit. Cost reimbursable contracts often include incentive clauses where, if the seller meets or exceeds selected project objectives, such as schedule targets or total cost, then the seller receives from the buyer an incentive or bonus payment.^[1]

See also

• Cost plus fixed fee contract (CPFF)
• Cost plus incentive fee contract (CPIF)
• Cost reimbursable contract
• Firm fixed price contract {FFP}
• Fixed price incentive fee contract (FPIF)
• Time and material contract (T&M)

References

1. ↑ Project Management Institute (2008). A Guide to The Project Management Body of Knowledge, 4th, Project Management Institute.

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