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 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.

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