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 Management Section of a Proposal?
Every project requires a proposal from a contractor. There are three sections of a project proposal. One of them is ...
What is Stakeholders Engagement Assessment Matrix?
Stakeholder is a person, an organization or a group of people or organizations that is involved in a project and ...
What is Burned out?
The job of a project manager is very stressful. He or she can face many situations in which stress can ...
What is To-Completion Performance Index?
It is important to monitor if the actual work performed is according to the plan/schedule and within the planned budget. ...
What is Monitoring and Controlling Process Group?
Five different types of project management process groups are used throughout the project life cycle. These process groups are related ...
What is Schedule Baseline?
Customer's requirements are to be fulfilled to carry out a successful project. While performing a project, the project is divided ...
