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across the country. You are hiring a contractor for portions of the project. The contract stipulates that you'll pay all allowable costs and an8 percent fee over and above the allowable costs at the end of the contract. All of the following describe this type of contract except for which one?
A. Cost-reimbursable contract
B. CPIF
C. CPF
D. CPPC
In my opinion - B. CPIF
type of contract is known as a cost plus fee (CPF) or a cost plus percentage of cost (CPPC)
contract. A CPIF is a cost plus incentive fee contract that reimburses allowable costs and adds an
incentive for exceeding the performance criteria laid out in the contract.
In this question the key word is except, so the wright answer is D. because CPPC means cost plus percentage of cost, in this type of contract the fee is variable because the fee is based on the costs
I would say C is the right answer being an added cost.
It is more convenient answer Option C- Cost Plus Incentive Contract.
Thank you. I seem option B-CPIF is a good answer.
B. CPIF -----------------------
in my opinion the answer is - B. CPIF
Option D is the correct choice.
