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You seem to be decoupling the concept with an incomplete SOW with an FFP-type contract as if sellers levy claims for one or the other in an exclusive way. An FFP-type contract, itself, does not cause an increase in claims. The claims are secondary to many other issues--an incomplete SOW being only one of them--where an FFP-type contract can exacerbate the ...


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The primary difference between an incentive fee and an award fee is one of the ability to measure objectively against criteria. An incentive fee is used where one can objectively measure; an award fee is when the application of an additional fee is based on a subjective assessment. https://acqnotes.com/acqnote/careerfields/award-fee-contracts


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It's a matter of how the vendor and the client negotiate the contract. Most commonly though, payments are made as work proceeds (monthly, quarterly, more frequently or less, etc) or at specific intervals (like agreed upon milestones, etc). It's a fixed-price contract, so both parties know upfront what needs to be payed, but vendors usually prefer to have ...


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A fixed price contract usually means that payment is tied to a successful outcome and therefore it sets up some expectation of service (perhaps a very complex expectation) which, if not met, means that the customer may not want to pay at all. Other types of contract usually involve staged or periodic payments. If the customer is dissatisfied they can walk ...


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Sellers are neither nasty nor nice; both sides are negotiating for their own advantage. Fixed price transfers all the risk from the buyer to the seller. When a contractor bids a fixed price job, it has to make a series of assumptions about what its direct costs to complete the job will be, what portion of its fixed and variable indirect expenses should be ...


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