Need a contract that controls costs and guarantees profit? Let’s break down the CPFF contract!
A Cost Plus Fixed Fee Contract, or CPFF, reimburses the seller for their costs and adds a fixed profit.
You need CPFF when you want to cover the seller’s costs but also give them a guaranteed profit, no matter the outcome.
To use it, clearly define allowable costs in the contract. The seller gets paid for those costs, plus a set fee.
CPFF helps keep your project predictable while ensuring your seller stays motivated! Make it part of your contract strategy.
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