What are the two forms of Cost-Plus Fixed Fee contracts?

Cost-Plus Fixed Fee contracts are designed to reimburse the contractor for allowable expenses and pay a fixed fee that is predetermined at the outset. The two forms of these contracts are Term and Completion.

Term contracts provide for payment for the contractor’s costs for labor, materials, and overheads during a specified term period. These contracts allow for flexibility in terms of the project duration and the scope of work might shift as needs arise.

Completion contracts, on the other hand, focus on the completion of a specified scope of work or project. This type ensures that the contractor is compensated for all costs incurred until the work is finished, along with the agreed-upon fixed fee for the completed project.

The other options do not accurately describe the two forms of Cost-Plus Fixed Fee contracts, as they either combine elements that are not part of this contract type or describe forms that do not align with the cost-plus framework.