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COST REIMBURSABLECPFF Form
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People also ask
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What is a reimbursable cost?
What does Cost reimbursable mean? A form of contract in which the contractor is paid all of his allowable expenses plus profit. The expenses recoverable will usually be up to a fixed limit then profit calculated on top. These contracts are essentially the opposite of lump sum contracts.
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What does cost reimbursable mean?
Cost-reimbursement types of contracts provide for payment of allowable incurred costs, to the extent prescribed in the contract.
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What is another word for cost reimbursable?
Cost reimbursable contracts are also called cost-plus contracts. This is where the vendor charges you for the cost of doing the work plus some negotiated fee or rate.
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What are examples of cost reimbursable?
Types of Cost-Reimbursement Contracts Cost contracts. Cost-sharing contracts. Cost-plus-fixed-fee (CPFF) contracts. Cost-plus-incentive-fee (CPIF) contracts. Cost-plus-award-fee (CPAF) contracts. Cost plus percentage of cost (CPPC) contracts.
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What does cost reimbursement mean?
A cost-reimbursement contract is an agreement between two parties to provide payment for allowable costs incurred by the other party. The final pricing of the deal is determined later based on the underlying deal and the actual costs it took to complete a project.
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What is an example of cost reimbursable?
A cost reimbursable contract (sometimes called a cost plus contract) is one in which the contractor is reimbursed the actual costs they incur in carrying out the works, plus an additional fee. Option E of the NEC3 Engineering and Construction Contract (ECC) is an example of a cost reimbursable contract.
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Is CPFF a cost-reimbursement contract?
There are several types of cost-reimbursement contracts, which you can read about in further detail below: Cost contracts. Cost-sharing contracts. Cost-plus-fixed-fee (CPFF) contracts.
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What is the difference between lump sum and cost reimbursable?
Whatever the terminology, the two broad categories for contracts are a pre-agreed payment amount (lump sum, or fixed price) and a paid-as-costs-are-incurred (reimbursement).
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