Fixed Price With Economic Price Adjustment Notes: Definitions & Explanations PDF | Download eBooks
Study Fixed Price With Economic Price Adjustment lecture notes PDF with project management definitions and explanation to study What is Fixed Price With Economic Price Adjustment?. Study fixed price with economic price adjustment explanation with project management terms to review project management course for online MBA programs.
Fixed Price With Economic Price Adjustment Definition:
Fixed price with economic price adjustments contract provides a special provision allowing for predefined final adjustments to the contract price due to changed conditions for specific commodities.
A Guide to the Project Management Body of Knowledge by Project Management Institute
Fixed Price With Economic Price Adjustment Notes:
When two parties agree on working together, a contract binds them legally to fulfill the requirements of each other in addition to following the terms and conditions. There are two broad classes of contracts; fixed price contracts and cost-reimbursement contracts. One of the type of fixed price contract is fixed price with economic price adjustments. Fixed price with economic price adjustments (FPEPA) contract involves setting a certain amount by the buyer to be paid to the seller. However, it provides the flexibility to adjust the cost at the end of the contract based on the changed economic conditions. Economic conditions may include price changes or inflation. This type of contract is used when the seller has to perform or provide for a long period of time or if the payment is made in a foreign currency.
Keep Learning with Project Management Notes
What is Resource Smoothing?
A project can need more resources than available. This means that the resources are limited for a particular project.Limited resources ...
What is Actual Cost?
It is important to monitor if the actual work performed is according to the plan. In addition, the actual and ...
What is Power Interest Grid?
Data regarding stakeholders must be collected and analyzed. A technique to represent stakeholder data is stakeholder mapping and representation. Different ...
What are Quality Objectives?
Quality improvement and management has become a necessary part of project management. Customers not only want the project deliverables to ...
What is Quality Report?
Although it is important to provide the deliverables to the customer and complete the project on time, but the results ...
What is Control Quality?
It is important to consider quality of project deliverables in project management in addition to the time and cost. For ...
