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Cost Plus Percentage of Cost (CPPC) contracts provide?

A. A reimbursement of allowable cost of services performed plus an agreed upon percentage of the estimated cost as profit.B. A reimbursement of allowable costs plus a fixed fee which is paid proportionately as the contract progresses.C. The supplier with a fixed price for a delivered performance plus a predetermined fee for superior performance.D. None of the above.

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Question ajoutée par Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date de publication: 2016/09/18
Md Fazlur Rahman
par Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

Option-A is best choice. The allowable cost means there is reasonable control of buyer  and then a agreed upon/fixed fee as profit.  Here the risk is mostly shared by the contractor.

Option (A). A reimbursement of allowable cost of services performed plus an agreed upon percentage of the estimated cost as profit

Imran Ahmed
par Imran Ahmed , Manager-Planning & Delay Analyst , Nesma United Industries (NUI) Saudi Arabia

Option-A

In cost type contracts, the performance risk is borne mostly by the buyer, not the seller.

sardar mardookhy
par sardar mardookhy , Head of portfolio management department , MCI

A. is my option,

thanks,..............

mamoun mokhtar
par mamoun mokhtar , general manager , albyan technical foungary

pay a fee that rises as the contractor's cost rise. Because this contract type provides no incentive for the contractor to control costs it is rarely utilized.

Muhammad Farooq
par Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.

Reply   -----------------------------

Krishna   KHASANIS  PMP
par Krishna KHASANIS PMP , Project Manager-Electrical , Larsen & Toubro Ltd, P T & D (International)

Thanks for the invite.

I go with option D - None of the above.

In CPPC type contract, buyer pays all costs plus a percentage of costs as a fee.