PMP Formulae: Seller is paid for all costs incurred plus a percentage of these costs. Buyers often do not prefer this type of contract because the seller might artificially increase the costs to earn a higher profit.

Example: Total cost plus 15% of the cost as a fee to the contractor

Question

Seller is paid for all costs incurred plus a percentage of these costs. Buyers often do not prefer this type of contract because the seller might artificially increase the costs to earn a higher profit.

Example: Total cost plus 15% of the cost as a fee to the contractor

Ratna Likhita · Accepted Answer

Cost Plus Percentage of Cost (CPPC)

PMP Formulae

Seller is paid for all costs incurred plus a percentage of these costs. Buyers often do not prefer this type of contract because the seller might artificially increase the costs to earn a higher profit. Example: Total cost plus 15% of the cost as a fee to the contractor

Cost Plus Percentage of Cost (CPPC)

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