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Fixed Price contracts place more risk on the?

 A. buyer B. C or D C. owner D. contractor E. seller

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Question ajoutée par Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date de publication: 2018/01/11
Mohammed Qaisar I PMP I MCIPS I MBA
par Mohammed Qaisar I PMP I MCIPS I MBA , Group Procurement Manager (Civil) , Al Ghurair Construction LLC

As per my opinion, it should be either contractor or seller. buyer always has the minimum risk in this type of contract. 

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

Answer: B -----------------

Haytham Jouda
par Haytham Jouda , MEP Manager , IHG

Unless a clause in the contract refer to a potential variation or modification.

Utilisateur supprimé
par Utilisateur supprimé

Fixed Price Contracts place more risk for the Seller.

 

Tom Chapman
par Tom Chapman , Project Management , Tom Chapman

Contractor assumes all risk for costs and subsequent P&L.

ANDRE DOURADO
par ANDRE DOURADO , Design Engineering Manager , Projconsult Engenharia de Projetos Ltda

It will depends from what side of the table you will be working for. I think the Contractor or seller should predict and incorparate the risk value on them price, but it is not completely solved question, cause the imponderable factors could affect the final profits. The Owner or buyer has the risk of the right accomplishment of technical assets and schedule, that should be a problem in the business, but it could be partially compensate with penalties. Then each one of interested parties are affected with differential risks, and usually will try to mitigate them with hedge (safeguards) clauses.

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