Page 65 - BASIC PRINCIPLES OF QUANTITY SURVEYING PROFESSIONAL PRACTICES

Politeknik Kota Bharu

Table 3.2: Cost reimbursement/ Cost Plus project type

COST + COST + FIXED FEE COST +
PERCENTAGE FEE FLUCTUATING FEE

• A sort of contract in • A type of contract • Project cost plus a

which the in which the fluctuating fee
contractor is paid contractor is paid based on whether
the project's normal the standard cost the final cost is

cost plus a certain of a project plus a higher or lower
percentage of the fixed charge for than the original
expected cost as their services. "target cost".

profit.
• The fee may be • Examples:

• The contractor may changed if the
i. Final cost not
have little scope of the
exceeding 50
motivation to contract changes.
million contract
perform the task
sum - value A
swiftly or

inexpensively– the ii. Final cost
longer he takes or exceeds 50
spends, the more million contract

money he makes. sum value B

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