Fixed Price Incentive Fee Notes: Definitions & Explanations PDF | Download eBooks
Study Fixed Price Incentive Fee lecture notes PDF with project management definitions and explanation to study What is Fixed Price Incentive Fee?. Study fixed price incentive fee explanation with project management terms to review project management course for online MBA programs.
Fixed Price Incentive Fee Definition:
Fixed price incentive Fee (FPIF) contract gives the buyer and seller some flexibility in that it allows for deviation from performance, with financial incentives tied to achieving agreed-upon metrics.
A Guide to the Project Management Body of Knowledge by Project Management Institute
Fixed Price Incentive Fee Notes:
A legal document that lists the terms and conditions of working, agreed by two parties is called a contract. Contracts can be classified into two categories; fixed price contracts and cost-reimbursement contracts. These categories have an impact on procurement and management process. One of the type of fixed price contract is fixed price incentive fee contract. Fixed price incentive fee (FPIF) contract involves a fixed amount of money paid by the buyer to the seller. However, the seller can earn additional money by fulfilling the performance criteria defined by the buyer. The additional amount of money is called incentive. This type of contract provides flexibility in the performance, however, the incurred costs more than the set amount is paid by the seller.
Keep Learning with Project Management Notes
What is Required Completion Time?
When a project is started, the total time required for a project to complete successfully must be estimated by the ...
What is Training Support?
Logistics support is a term given to providing maintenance, repair and support to project deliverables after they are provided to ...
What is Matrix Layering?
A matrix organization is a combination of functional organization and project-based organization. The functional employees become part of the projects. ...
What is Interactive Communication Model?
It is important to communicate any type of information in order to be understood. Communication can involve two or more ...
What is Expert Power?
A project manager is entitled to give orders to his or her project team members. This authority is very much ...
What is Organizational Breakdown Structure?
The human resource of the project is assigned with different tasks and responsibilities. These responsibilities and roles must be represented ...
