Talk:Cost-plus contract/Archives/2013

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Dubious

I seriously doubt that the following advantage actually happens:

Final cost may be less than a fixed price contract because contractors do not have to inflate the price to cover their risk.

Though this might be true in theory, I don't think it happens in reality. Does anyone have any reliable source supporting this statement? – Adrian Willenbücher (talk) 11:09, 25 March 2013 (UTC)

I can site personal experience. On a fixed price contract, our prime, who would typically be highly motivated to offer the lowest price (price to win) has told me that they were forced to increase the price significantly. Small businesses can typically be more flexible and willing (perhaps foolishly) take a bit more risk (an organization can lose money an indefinite amount of money on a fixed price contract). — Preceding unsigned comment added by 50.201.159.225 (talk) 14:01, 1 August 2013 (UTC)