Dictionary of Procurement Terms

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Search Results: 1-2 of 2 results for “Cost Contract”
  • Cost Contract

    A cost-reimbursement contract in which the contractor receives no fee.
  • Cost Plus Percentage of Cost Contracts

    An agreement on a construction project in which the contractor is provided a specified percentage profit over and above the actual costs of construction. These contracts are considered poor business practice because the contractor has little incentive to hold down costs. This type of costing method is prohibited in federal purchasing. A Cost Plus Fixed Fee Contract is a better approach.

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