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    This addresses fixed-price and cost-reimbursable contracts.

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    What are the risks involved in fixed-price contracts and cost-reimbursable contracts for the two parties and explain them.

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    https://brainmass.com/business/business-management/addresses-fixed-price-cost-reimbursable-contracts-474655

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    A main risk factor in a fixed price contract is work quality. If the seller finds that expenses exceed what was projected, the price is still fixed. Sellers often start buying cheaper materials and supplies to compensate, which is a risk to both parties because the seller incurs excess expense, now losing money on a job that was projected to be ...

    Solution Summary

    The solution explains the risks involved in fixed-price contracts and cost-reimbursable contracts for the two parties involved.

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