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A prime contractor in a customer project under CPFF contract has run into unexpected technical problems. How you will manage it?

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Question added by Muhammad Usman Tariq , Visiting Faculty , National University of Science and Technology
Date Posted: 2014/10/29
Endras Pribadi
by Endras Pribadi , Asset Manager , PT Medco E&P Indonesia

A cost plus fee fixed fee contract is a type of contract wherein contractor paid for normal expense plus an additional fixed fee for the services. Because of flexibility clause in the contract, allow us to change the scope and value of expense to recover unexpected technical problems (and plus fee), as long as didn't breach the term and condition of the contract.