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What is the advantage of a fixed fee?

Fixed fee billing: the pros This predictability means there are no surprises for clients when the final fee is invoiced. Fixed fees also enable clients to make better decisions as they can weigh the costs of legal representation against the benefits and drawbacks of winning or losing the case.

What is the difference between cost-plus and fixed fees?

A cost plus contract means that the price of construction is the costs plus an additional fee, normally designated as profit. The fixed costs include the cost of the materials and labor along with indirect costs known as overhead. It is simply an agreement to pay costs plus profit, all as defined in the contract.

What is the difference between a fixed-price and a cost plus contract?

Budget: A fixed-price contract is just that: fixed. The agreed-on price at the beginning of the project is the price at the end. Conversely, a cost-plus contract estimates a projects costs but doesnt set the final price until the project is completed.

What is a fixed-price at cost contract?

Fixed-price contracts, also known as firm-price or lump-sum contracts, are agreements in which the two parties state the goods or services one party will provide and establish the price the other party will pay for them. In some ways, theyre similar to the prices of goods at the grocery store.

What is a cost-plus percentage of cost contract in construction?

A CPPC contract is one that is structured to pay the contractor his actual costs incurred on the contract plus a fixed percent for profit or overhead (that is not audited/adjusted) and which is applied to actual costs incurred.

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