Mis vahe on cost-plus ja fixed-price vahel?

Cost-plus and Fixed-price are two different types of contracts in project management and procurement.

• Cost-plus (cost reimbursement contract)

  • The client pays all actual costs of the contractor plus an agreed-upon profit (fixed amount or percentage).
  • The risk of cost overruns primarily lies with the client.
  • Used when the scope of work or costs are difficult to estimate in advance.

• Fixed-price (lump-sum contract)

  • The cost of work is fixed in the contract and does not change regardless of the actual costs of the contractor.
  • The risk of cost overruns lies with the contractor.
  • Suitable for projects with clearly defined requirements and scope.

Summary:

• In cost-plus, the client pays based on actual costs plus profit, reducing the risk for the contractor.
• In fixed-price, the contractor bears the risk of exceeding the budget but receives a fixed payment.

The choice depends on the degree of certainty of the requirements and the willingness of the parties to assume risks.