_____ contracts involve payment to the supplier for direct and indirect actual costs and often include fees.

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02-08-2022
Business

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_____ contracts involve payment to the supplier for direct and indirect actual costs and often include fees.

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smecloudbird17 smecloudbird17 · Answer 1 · 2022-08-16T10:00:13-04:00

Cost-reimbursable contracts involve payment to the supplier for direct and indirect actual costs and often include fees.

A cost-reimbursable contract is an agreement between two parties called the contractor and the owner. Here the contractor gets the reimbursement for the cost incurred while carrying out the work as per the contract, and also gets an additional fixed fee from the company or an owner.

Here the final pricing of the contract is determined later based on the underlying deal and the actual costs it took to complete a project given to the contractor.

Hence, cost-reimbursable contracts involve payment for direct and indirect actual costs.

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